Michael Inouye, a senior analyst with ABI Research, says the dominant console makers, Nintendo, Sony and Microsoft, are in their "twilight years," partly because of the rise of mobile gaming.
They will soon strike back, however. Nintendo plans to release its next-generation Wii U in time for the holiday shopping season, while Sony and Microsoft are expected to roll out new consoles next year. And the big console game makers are investing heavily in mobile games.
Microsoft has also released a new app with Windows 8, called SmartGlass, which can turn a user's smartphone or tablet into a second screen where they can control movies and games playing on the big screen.
For now, independent game makers have the lead. But the console world isn't far behind them.