I play more XBLA/PSN/Indy PC games than I play anything else but it's not like I'm not going to get Uncharted 3, Battlefield 3, etc. I probably do pass on a more big budget games than I used to but price isn't why I choose to play other games.
I think when games I consider quality are released on tablets then it will displace some of the time I spend playing the XBLA/PSN/PC/handheld games.
Games I played more than an hour in the last 30 days: Magic 2012, Dungeons of Dredmor, Outland, co-op Pixeljunk Shooter 2, Clash of Heroes, Bastion, LittleBigPlanet 2, Team Fortress 2, Bad Company 2, Terraria, Crimson Gem Saga, Hot Springs Story.
In the fall there will be more big budget games but I won't bother with games with only decent quality like Bulletstorm because I'm having more fun with some other games whether they are $10, $50 or 99cents. Too many of the big budget games are clumped in one of a few genre so of course some of them lose out... to the games in the same genre that are better than it. Is Gears 3 really competing that much with 99c games or is it getting a smaller piece of the pie with the Call of Duty, Battlefield, Uncharted, etc that exist?