In the Economist "The World in 2006 print edition", there is a very good article about video games and advanced technology (registration required). Its claim is that previously the most advanced computer technology in the world could be found in research laboratories or corporate data-centres. Now it's rather in millions of living rooms, inside video-games consoles. A complimentary information is this mp3 by Tom Standage, technology editor at The Economist. Some notes:

gaming is no longer a kid thing: demographic shift on the way: game is a new media (now there are lot of gamers in their 40s)
not bigger than the movie industy but it's really moving
console technology is now better then tech used to do movies like star wars... high definition
gaming is not just a matter of having super high tech with special effects: retrograming is also great
future: nintendo's unusual way of doing: change the game experience (through the new console controller + games aimed at older people)
future: episodic gaming: buy or download game episode with new segments on a regular basis (every week)