Personally, I'm not surprised. It will always be a niche, just like mobile will always be a niche. Someone will be chained to a web browser and unable to play a full-bodied PC game or get to a console. Someone will be stuck in a waiting room with nothing to do. There's the eternal question of attention spans and the porcelain throne.
What we saw, and what I knew was coming from the beginning, is the general public getting exposed to what the rest of us went through in the late 1990s to early 2000s, with a little site known as Newgrounds. And it's playing out just like then. It was new, it was interesting, it boomed. Then came the flood of badly-imitated crap. Then interest waned, leaving only the diehards in its wake.
Mark my words, mobile gaming [cell phones, not portables like the 3DS] are experiencing the same cycle. Eventually, phones will occupy the space where portables cannot tread. "Social" games will occupy the space where mobiles cannot tread. We're getting new ways to interactively entertain ourselves; there is no revolution, there will be no death of any existing format.
Source: http://www.gamesradar.com/8-reasons-social-gamings-gold-rush-drying/
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