BackFire
Blood. It's nature's lube
There will always be good games, in fact, I'd say that their are more good games coming out these days then ever before.
People tend to look back on something and give it more credit then necessary. They look back at the super nintendo era and say "man, super nintendo had so many awesome games, way more then their are for the newer consoles". Though, they forget that for the super nintendo, about 80% of the games were stinkers, just as 80% of the games out now are stinkers. No one remembers the shitty games that were coming out, so to many people it seems that the super nintendo era had a higher volume of good games, which isn't true.
The video game industry is fine, it's probably better now then it ever has been since it's no considered a mainstream medium. Game developers are getting bigger budgets, better technology and are able to put that technology too good use. It's actually quite an exciting time to be a gamer, IMO.
There's still plenty of innovation in the gaming industry (Nintendogs, GTA anyone?), it's just harder to think of new genres/ideas because so many have been done. But they're still out their.