As long as there are companies like Rockstar, Bethesda, id and Epic, hardcore gaming won't take a slump.
Many other developers however will have to "diversify" their strategy and portfolio in the future to stay in business. That means overall less AAA Retail games, but with (hopefully) better quality. The medium sized devs (Obsidian) are eventually gonna do more F2P, digital etc. stuff. Aka following a trend that may or may not be succesful for many of them.
Personally speaking, I think that's good. The game industry is already too big and crowded with "me too" nonsense as it is, and one of the very few branches were the free market still works as it's supposed to work. Once the market is saturated with too much crap, people are gonna lose interest/become more picky and thus the cleansening of "redundance" will be enforced by the free market.