Well, I don't think he was onto anything when he was predicting that the games industry is in for another big crash, but from what he describes it seems like Microsoft has really fucked this one up. Kinect (The Peripheral Formerly Known As Natal) is going to be Microsoft's very own Virtual Boy, bringing NOTHING to the table worth getting and being an embarassing flop. So will Playstation Move, both for one very simple reason: what market are they targetting with these peripherals? The exact same market who would have already bought a Wii years ago. And a Wii is BUILT around motion control, the Wiimote is the default packaged controller, while Kinect and Move are expensive peripheral add-ons that will be useless or even completely unusable for the REST of the games being released on the console (I'd like to see you try to use Kinect to play Halo: Reach).
Casual gamers are not going to buy an Xbox 360 or PS3 to use Kinect or Move. If they were interested in those kinds of games, they'd already have bought a Wii (which has the added advantage of being much cheaper). And anyone who's convinced that the new peripherals will somehow be "better" than the Wii is frankly deluding themselves- while Microsoft seems to think the fact that Kinect is a controller-less controller is a selling point, how deep can you make a game when you have NO buttons? Would you be able to play, say, Super Mario Galaxy with Kinect? Not in a thousand years. From what I've seen, Move also looks far less versatile than the Wiimote and again it gets hit by the fact that it's less effective than a standard PS3 pad for playing normal games. (Truth be told, I myself tend to avoid using the Wiimote to play any Wii game which doesn't use motion control, like Smash Bros Brawl).
But I still think that Cracked article is exaggerating the effect this is going to have on the video game industry as a whole.