Although this is a fast evolving industry there have been only three major advances thus far that constitute an entire unit in version number nomenclature. First, was the actual development of games. Second, a 3rd dimension was added and virtual world became as geometrically complex as the one we live in. Then, the development of an integrated online world for you to create and share your gaming experiences with the world. And soon we will see the next iteration of game.
Since the n64, gameplay has more or less plateued. Sure animations are much smoother now. Visuals and sound are beyond compare and we have motion sensing. However, our abilities to interact with the world are just as limited. It's been 13 years of walking around a wondrous virtual landscape wishing I could make full use of its resources only to realize my virtual incarnation has only preset movement sequences that are completely unfit for anything other than the predetermined purposes of the video game. I've taken countless souls using crowbars, hammers and many other tools waiting for a day when I can make proper use of these instruments.
There are games that make constructive use of a gamers creativity. Little Big Planet, The Sims, and even Halo's Forge, to an extent, are all testaments to a gamers ability to do more than kill and destroy. Even so, there's a foreseeable advance, closely related to creating and sharing levels as seen today, that will enable an interactivity that rivals our ability to interact with the real world.
It may seem farfetched, but its foundation is well set. Huge open world games like GTA have been around for a long time now and can function even without strict limitions on the gamer's capabilities. Using AI to ease character control and in-game level editing are far from being recent innovations. It's a matter of putting the pieces together. With AI facilitating your ability to use tools, the latest physics enabling you to interact with everything in the virtual world, and huge landscapes for you and your friends to play in, gameplay could involve anything from a simple deathmatch to building a civilization. All in real time, through gamers' ability to control their characters and interact with the virtual world.
The only thing left is precise and capable controls. This level of depth in gameplay requires that a gamer be able to control the character's hands, while still being able to walk, look, jump, crouch, etc.Current controllers simply don't have enough buttons and joysticks, not that we'd be better off with more buttons and joysticks. Fortunately, Nintendo has shown the way with their wiimote. While the wiimote itself lacks such capacity, it has already sparked a new wave of controllers .Personally, I'm betting Sony's wand, when used in pairs, can support this level of control.
I guess we'll just have to wait and see.