I think we can't say with certainty that gaming reached its peak,we really aren't fortune tellers and can't predict the future.
What I see though,at least to myself and a few others is that there some lack of excitement with this 'new' console generation in comparison to previous generations.
And I can track down reasons and factors that contribute to that,and boy they are many.
One thing is how the generation started. With Nintendo taking a unique different way than the other companies proclaiming early on that they don't want to compete with the other console makers full of arrogance because they believed they will be making enough money to keep them alive if only they kept making Mario and Zelda even if they didn't conformed to any standards the 'competition' had. From that early point when Nintendo showcased its new console,we the players were told that Nintendo wasn't going to be making games for 'us' but for the 'others' the so called 'casual' crowd. So there you have it,very early,one of the 3 companies letting down many people who wished Nintendo would try to catch up with the other 2 after Wii.
Then of course we had the Xbox One story,with Microsoft terrorizing players around the globe,that their system will have a camera always connected to the internet to spy on people,telling people that they won't be allowed to sell a game after they bought it,etc... Perhaps Microsoft took these 'police state measures' back,but the stain they left is still here. The idea of gamers for Microsoft is still worsened than it was before,and some are still cautious,and think that perhaps Microsoft will bring back these 'measures' once the 360 owners have migrated on Xbox One.
Thus the only company and console that didn't left a bad taste to gamers was SONY's Playstation 4,but still its only one console of the 3,and the industry have got enough bad rep because of the aforementioned.
The other thing is that there wasn't any of those big new games that used to surprise people positively on E3s making everyone excited. You know,that kind of game that either have remarkable visuals considerably better than last gen,or did something else in a new way. Well the only game at the unveil of this round of consoles that had somewhat of that special something was Watch Dogs,and look how that turned out. After people got excited with the cool visual stuff they were seeing, Ubisoft took away the magic by downgrading the game's visual leaving a bad taste in everyone's mouth,and when the game was finally released,people found out that it has repetitive missions and was a less detailed game than other older games like GTA4 in some aspects,with its world being less interactive and not responding to your actions as games that have come years ago. So there is definitely a lack of 'wow' titles that would be classified as 'system sellers',the kind of games that positively surprise you and excite you and make you anxiously wait to play them.
The fact that some games that came early in these platforms that while they wasn't as much exciting but still had people wanted to play them,turned up to have important flaws and be somewhat letdowns, like Battlefield 4 and Thief is also bad.
This recent console generation surely doesn't pack the amount of freshness and excitement others have had. But perhaps this might be only the begginning and things will change. Its up to developers in the end (I think) to make well worked,not rushed,fresh,exciting games that will make people wanna buy the new consoles and drive their sales.