Well I think it's been happening for a while now just at subtle levels.

The fact that consoles are allowed to sell "exclusives", imo, were the first steps toward the companies making the decisions as to what games we were allowed to play or not. The only option to not playing the game at all being to buy the accompanying console so you could. Not being an insider, I don't know if this is more the console developers, or the game developers who get to profit the most from this, but the argument remains.

We can look at advertisement too, but this I think is more a financial and demographic thing. The real truth is, the only time I see any ads on tv for video games is when I'm either watching spike tv, or the kids have Nickelodeon on. So now we are also allowing them to rule out most if not all female gamers, and what ever types of games would be marketed to them.

In comparison to these things, I think the VG awards themselves are only reflecting what already is, and what we as consumers have allowed. Notice too, (unless I missed it when i browsed the site) there were 0 cat.'s for PC gaming. So now we are also allowing them to define what a video game is, which is, if its not on a console, its not a video game.

Try telling that to the owners of what free standing arcades remain and see what they say.
If not for them, the industry wouldn't even exist, and yet...where are they in the ceremony?

So imo, awards like this are only saying: Out of these games we have decided to be good, this one is the best one of the games we have decided are good.

I have to correct myself. There is a best PC game, but it is the only category for that type of gaming.

Console exclusives are in decline for everything but the Wii. I recall reading an article in the Game Informer about this. It's the game developers' push to eliminate them. After all, they're selling their stuff to half the people who have consoles when they could be selling to all. That sure doesn't help their profits.
And lest we forget, a NUMBERED Final Fantasy is making it's way to the 360 this summer. Sony wouldn't be sharing that without a good bit of pressure from Square. Though it's true as well that the PS3 is getting it's own FF too, in Final Fantasy Versus XIII.
Anyways, I hope this trend continues. I'd like to see several 360 games ported, myself. If not for a good friend who loaned me his X-box years back, I'd never have played KotOR, Jade Empire, Halo, Fable, etc. All very fun games kept from me because I couldn't afford two consoles.

I think that one thing that's partly to blame for the decline in the actual number of games is the economy. Doesn't account for all of it, but I think it's a factor. Companies just aren't as willing to drop money on a game that may or may not sell. They want to give us the next Zelda, or FF, or Halo that they know we'll buy, instead of risking whether or not we'd like to play Shadow Hearts. And anyone who has played that one can tell you that it's a match for other big name games of its type, but if they tried to make it today, it might be left in the corporate trash can.
Midway: "Sony, we have an excellent game for you today. It's a turn based RPG, with several great features, nicely developed characters, and a good story."
Sony: " Wait, so you're not here about the next Mortal Kombat?"
Midway: ".... No."
Sony: "Next!"

I agree about the advertising. Really, the only commercials I see are for the PS3 console itself, and for GameFly. (The PS3 ones are pretty funny, imo.)

I've never put much stock in award shows. It's just other people telling you what they thought best, but usually without explanation as to why they think that. And seeing as this one is by Spike, and looking at the other shows Spike makes, I really care little about what they choose. (MXC is teh funnez, though.)
What the VGs are is an attempt to market to a larger audience. You know, the kind of people who don't like to think. The ones that watch MTV reality shows and believe that who does or doesn't get a rose is the most important thing in the world. Or that nothing is worth watching unless there's a semi nude woman in it. Now, I certainly don't mind the inclusion of attractive women in most things, (I am a man, after all) but I'm not going to go buy a game because one told me to.

Now, if one threatened to withhold her affections unless I went out an bought a new game, then that might be a different story. Incidentally, if anyone knows where to find the perfect woman, then please send her my way.

I was going to guess too that it was the developers of the games who would want to eliminate the exclusives, and I agree too that they should. Otherwise where does it end?

I would be more than happy to sit down and play Left for Dead etc, and I'm sure those guys would like their share of that profit too.

But since I like to, and try to look at both sides of every story...where will games be in ten years or so once they have been weeded out fully? I would like to think it would press the actual makers of the consoles...Sony Microsoft etc, into focusing more attention into designing a better working and reliable system. Lets look at the PS3 launch consoles, and the "exclusive" FoM game that went out with them. Would Sony have been satisfied sending out the machines that Im fairly sure they knew would start burning out after a couple of years with out the safety of the exclusive to hide behind?
Lets face it, they knew they had a game or two were they could justify themselves with a "Hey the console may not last more than a year or two, but its the only way people will have to play this game, so who cares. Ship them."
Lets also look at it from the game developers side. Would Insomniac have rushed out a half working sequel to that very same exclusive game if they knew the ENTIRE gaming community would be scrutinizing it, and not just Sony owners? I bet not.

I would like to get into the free online VS. paying for online play too, but I think that discussion would over rule everything else we've touched on here. If XBOX had no exclusives, wouldn't the console with free online play AND all the same games win? Maybe? But in turn I think that would force more work and efforts into the actual networks and their features.

My hope is that removing exclusives would force both sides to put a little more effort into everything video games.
I am more afraid however, that it may not be such a good thing, and instead of everyone continuing to raise standards...one set...its all the same anyhow standard would be implemented instead and we will be forced to lose the difference in the consoles that keep the industry moving forward. Competition breeds progress and innovation.

Should we go into the already failing 3d gaming, which is as of now too costly to be profitable?
I have a feeling that is the arena we will see the newest console wars personally.

Did anyone see the trailer for Spec Ops: The Line? That game looked sick.