Gamers.
Gaming has definitely reached a larger demographic during this console generation: while it sounds like fun to play Wii bowling with the entire family (even Grandma!), I think it's actually done a fair share of harm... bringing us the casual/freemium model, the resurgence of shovelware and the overall simplification of gaming.
Somehow, despite gaming being bigger than it ever has before, console gaming seems to really be hurting. Many developers are closing up shop, or going Grapes of Wrath on our asses and moving to the casual gaming/mobile scene to stake their claim. There are still lots of people buying games, but most of those games are Call of Duty, or used games from Gamestop... so now we have publishers changing their games to fit the CoD crowd (Resident Evil 6), and introducing all sorts of digital purchase models (episodic content, online passes, DLC) to try and recoup the costs they lose to the used market.
As much as we like to blame Activision for their yearly, derivitive sequels or Capcom for their whacky DLC plans, the real cause of all of this are the consumers, the gamers. We speak with our money, and the gaming industry listens. I've still mostly enjoyed this console generation(so I'm partly to blame), and I think we've actually improved on a lot of things in this generation too, but when I reflect on the current situation of gaming, and what's to come if things stay this way (I've seen more than a few big-wigs talking about how free to play is the future of gaming), I definitely feel dissapointed.