Hmmm. Firstly the console fanbase hasn't been cheering the change of beloved non-shooters into shooters from what I've seen. Secondly, you can't blame the demise of variety in the PC space on the consoles. In fact doesn't it go completely the other way, that games were varied and interesting until DOOM, and then everything started to become a 3D shooter? The age of Lucasarts games and the like was definitely ushered in with the PC's 3D gaming. Simon the Sorceror had two artistic 2D adventure games, and then the most god-awful 3D attempt you ever saw because no publisher would fund anything not in 3D. Lemmings was turned 3D. Worms was turned 3D. The proliferation of shooters comes from XBox as I see, which had lots. Shooters didn't do so well on PS2. This gen launched with Gears and Halo, and sony demanded shooters (Uncharted was made a shooter against ND's initial intentions). And I always felt there was something of the PC gamer in the early XB gamer; PC gamers who got the bestest PC games on their new DX box. Perhaps that's not true, but I don't see a correlation between the modern gamer and the state of the industry beyond people buying the latest fashion. Once upon a time people bought racing games en masse. Another time it was RPGs. Another time strategies, or space shooters. Normally there's one key title that launches the crazy then a host of clones until it fizzles out and we have the next Big Fad. Shooter fatigue seems to be setting in. We'll see where buyers' money goes in the following years.
Yes, the move to 3D saw the death of many beloved franchises, developers, and publishers.
Franchises changed and died because everyone was trying to figure out how to transition to 3D and hence many were pushed into 3D before the technology was ready for the game types.
Developers changed and died because publishers wanted to ride the 3D wave.
Publishers died because some franchises just did not work and hence did not sell as a full 3D experience, especially on hardware that was available at the time.
Worms was a perfect example. The 2D gameplay was brilliant and addictive. Especially once you got a few mates around to lob explosive munitions around and then watch the hilarious results. Moving to 3D killed it. The game became awkward, unamusing, and extremely limited. What's interesting is that now that Worms has gone back to 2D it's seeing a bit of a revival on PC. It's still very much a niche game, but it's now a relevant niche game again, instead of a dead niche game.
And sure, Doom enhanced the FPS movement on PC (for many it was Wolfenstein 3D, but for the masses it was Doom), but it wasn't until much much later that FPS started to be as generally popular as many other game types.
Interestingly enouogh FPS started to surpass other game types in popularity when the above mentioned push to make everything 3D happened. In an attempt to make everything 3D, you had to simplify or dumb down many gameplay elements that existed in the 2D games.
It's notable, for example, that Blizzard waited a long time before jumping in on 3D and even after that long wait they had to simplify many elements of their first 3D game. Starcraft 2 was started and launched at the start of the 3D craze, but Blizzard wisely held off. 3D would have meant greatly reduced unit counts and much simpler graphics at that point in time. Diablo II was created and launched when 3D was in full steam but again Blizzard wisely held off. In their first 3D game, Warcraft III, you can easily see the compromises that had to be made in order to fit an RTS into a 3D rendered world. Greatly reduced unit counts in order for the game to not get bogged down attempting to render potentially hundreds of units on screen.
Anyway, the point being that it wasn't FPS games that ushered in the demise and death of many franchises and gametypes. But the push to turn everything 3D when it may or may not have been time to do it. Once you piss off your current fanbase and aren't able to pull in new fans, it's very hard to get the original fans back.
FPS was one of the few gametypes that was easily and noticeably better moving from 2D + sprites to 3D + 3D models. Racing was another one, and hence saw a huge surge in popularity in the early days of 3D on PC.
RTS, TBS, RPG, and adventure games were some of the worst in terms being forced into the 3D world. Detail was lower, sacrifices to enable 3D rendering resulted in obvious compromises to gameplay, etc. It's no wonder that RPGs and Strategy games that remained 2D continued to do better than their 3D counterparts for many years. But with publishers pushing for 3D (what you noted about funding above), some had no choice but to go 3D and hence go out of business. Although some managed to survive.
So yes, I have a love/hate relationship with 3D.
And yes, consoles started off with FPS in order to woo PC customers. Halo on Xbox was a very blatant attempt at it, and it worked. Later as PC manufacturers attempted to move to consoles, FPS developers inevitably had more success. PC FPS translates fairly well to console and console controls. PC RPG, RTS, and TBS don't translate to console controls very well.
Hence the rise of FPS on consoles being driven by PC developers with console developers jumping in. BTW - Yes, I realize that Goldeneye 64 and Turok existed before PC devs started to try moving into the console space.
But now with most formerly PC devs concentrating on console developement, and most current PC devs attempting to transition to console... Console based developement decisions are hence dominating almost all AAA PC games. Diablo III and Guild Wars 2 both featuring design decisions heavily influenced by the future move to consoles, for example.
Hence, the PC dev. movement to consoles is affecting what games are funded for PC similar to how the introduction of 3D acceleration on PC affected what games were funded for PC. I don't blame the devs/publishers for doing it. PC has problems that many don't want to admit exist. But I do hate the indirect effect that it has.
Meh, long rant. If anyone didn't read this, I don't blame them.
Regards,
SB