lets plays and twitch is going to kill off AAA gaming as it stands right now. the people buying the yearly franchises are in their late 20s, 30s, or older and they are going to age out of buying that much. The younger people aren't buying as much. I don't think its necessarily a bad thing, its a bit insane how huge the teams for Assassins Creed, Destiny, etc have gotten - spending $100m on a AAA game means you need to sell at least 4m copies to just break even.
It will be interesting to see what happens though. I don't think its necessarily bad, but my favorite genre of games is the deep immersive story stuff like Mass Effect, AC, TLOU, Uncharted, etc and I'm not sure how a lot of that stuff survives. They have been trying to integrate multiplayer into every game the last few years and I think thats just forcing unwanted crap down.
The funniest thing is that for years publishers were worried about piracy, but its not piracy thats going to diminish their userbase, its literally people not even wanting to play their game but watch someone else for free.