I think equating videogames to music, movies, or television, is a flawed analogy. First of all, televised programs are free (exceptions for cable, etc.), and the concepts of the material they display are not limited by the technology. In other words, the "software" can evolve indefinitely. Not so with game machines.
Music? Well, it would be more accurate to compare the rise and fall of musical genres to videogames, rather than music itself. Music has always been, and always will be, inextricably intertwined with humanity. There will never come a day when the world populace gets "burned out with music". However, time and time again, a genre rises to popularity, is shamelessly (and shamefully) exploited, and driven headfirst into the ground. There's the "glut" in music, and the consumers react the same way they did to videogames: They stop buying. They've already heard all of the clones and variations, and the genre is suddenly spent. Nearly overnight, the world decided that they no longer want to hear a Poison clone (death of glam), or a boy band (died for nearly a decade, has been recently revived), or disco (sporadic resurgence), shredder guitar music (died 1990), on and on. In 1983, people decided they were tired of the maze game genre, the uninspired driving game genre, the DK ripoff genre, etc. etc. Videogames died because they only had a handful of "genres" to push, and none to hold in reserve for when the public thirsted for something new.
Before I forget about movies, let me note that they are similar to television in that the medium (in this case film) is not a technical impediment to the artist's vision. It may be difficult to rig a special effect and make it look genuine, but the film itself has technical capabilities far beyond the saturation point of anyone's vision for the near term, at least. A person trying to create a game on an Atari 400, however, definitely has a very short horizon. If you insist on equating videogames to film (in terms of public fickleness), a closer match would be the rise and fall of the Viewmaster.