There's an interesting article by James Pinkerton up on TCS about how Video Games could/should take over movies as the dominant form of popular culture. He does get some of his facts wrong in the article on a few minor points (for example, video game sales did exceed box office receipts, but not total film sales,ignoring film rentals and dvd/vhs sales, as well as related toys and movie tie-ins), but overall, I wouldn't be shocked if in 10-15 years, video games were more popular than films.
That said, I don't think movies will ever go away, and I highly doubt that a 'choose your own movie' system will ever become popular (think the Futurama episode when Bender became a wrestler--the crew saw 'All My Circuits' in the theater and had to choose what Calculon would do). However, we're already seeing more and more 'event' excitement over video games and video game systems than we are for films. I know there have been line-ups for some of the Final Fantasy games, as well as Halo 2, and even for Madden 2005 for some ghastly reason. While we haven't had the 'I have no life so I'm lining up for Episode 3 for 8 months' levels of insanity in the US, people have been known to venture freezing cold temperatures to pick up the latest and greatest systems and games in Japan (as in the recent PSP launch).
So essentially there is the interactive media camp, and the passive media camp. These two groups haven't gelled that well together. In my opinion, the majority of the games based upon films, especially tie-ins, have been terrible, and I can't recall a single video game translated onto film which has been rewatchable (although the Silent Hill movie may have some promise, but it's too early to tell). There hasn't been much success in trying to bridge the gap between the two mediums.
I also doubt that TV fits into this equation. I haven't been watching as much tv as I once did, especially with many of my favorite shows available on DVD (or bittorrent). Even old mainstays like The Simpsons have become dull and almost a chore to watch. My TV viewing habits consist of Battlestar Galactica (the remake), the occasional Cubs game, and the occasional night of Adult Swim. I couldn't even get that excited about the new season of South Park this year. There seems to be a general 'dumbing down' trend on television shows, in large part thanks to the way the industry creates television shows (but I'll cover that in a later rant).
This all leads to my question--do you think that video games and interactive media are the future of the entertainment industry, or are they just a part of the entire future entertainment mish mash, where no one component of the entertainment industry can never hope to gain the dominance films had in the 'golden era' of film?