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So taking into account the lockout chip business model that pervades the console market, how can a smaller developer reach gamers?

This is a question that Microsoft at least is taking very seriously. XBLA has been a great tool for introducing smaller, independent developers to the masses without requiring massive amounts of money (an XBLA title may cost upwards of $50-100K, which is very cheap compared to the multiple millions spent on many titles these days). For example, Ninja Bee now has several games on XBLA (Outpost Kaloki, Cloning Clyde, Band of Bugs, and Eets), a situation that would've been next to impossible on earlier consoles. Microsoft is also developing XNA for hobbyist/enthusiast game development, and the upcoming 2.0 version will finally add networking support for games on Xbox 360. Once that's in place, they just need a good way for non-developers to be able to play the games (right now it requires a $100/year subscription to run your games on the console).

Nintendo and Sony both have areas where they could expand support for independent developers (Wii Virtual Console, Playstation store), but they're nowhere near as far along with that as Microsoft is.

And if the dependency on kb/mouse is disappearing due to the use of Xbox 360 controllers with PCs (and the use of PlayStation controllers with PCs through EMS USB2 adapters before it), do you predict this will change soon?

Honestly, I see it going the other way around -- PCs will be relegated to hardcore gaming only, mainly simulations like Flight Sim, "professional" competition-type games, and grind-fest MMOGs. Every now and then you get some company that has the bright idea of turning a PC into a console (see the Phantom), but it generally never works out.

The other alternative is that game developers will continue porting games from consoles to PC, with the console-style control scheme intact. For example, Red Octane and Activision will be bringing Guitar Hero 3 to PC and Mac and will use the console-style USB guitars (most likely it'll be the same guitar as what's shipped for the Xbox 360). The problem with this approach is that PC players hate it when game companies port like that. See the outrage around Oblivion's "console interface", for example. The thing is, if you're targetting a 10-foot experience you want the "clunky" console-like UI for readability at a distance. Anyway, it's my belief that PC gamers who complain about console ports rather than being grateful that they got anything at all are the ones who will kill PC games. Why should Ubi, EA, 2K, or others bother shipping on the PC when they'd have to invest in significant UI redesign or suffer internet complaints?

Bah - highstreet games - tsk tsk (shakes head), get in the indie scene. The games are different/unique (usually), they actually all run on my PC (eek! - faints) and you aren't lining the pockets of faceless corporations. Sure there are plenty of dogs, just like high street games, hence lists like these are great.

Starscape http://www.moonpod.com/Starscape/
by http://www.moonpod.com/
This is a classic top down any direction scrolling shootermup, imagine asteroids but then go nuts with the artwork and add a giant space station that follows you around like a portable base, multiple fighters docked within it, research, construction and customisation plus a pretty cool anime rendered story adventure.

Spacetripper http://www.pompomgames.com/spacetripper.htm
by http://www.pompomgames.com/
Whilst PomPom's second game mutant storm definitely has a hardcore appeal that we like, we've found ourselves coming back to their first offering more and more. At it's core a tribute to Williams arcade classic Defender, it'll leave you wondering why they don't make games like this anymore.

Alien Shooter
http://www.sigma-team.net/alienshooter/index.htm
by http://www.sigma-team.net/
A great control system (move with the cursor keys, and aim with the mouse) , and gorgeous graphics made this our favourite Robotron-A-like. Alien Shooter likes to take gore to the max. We were sold on it once we picked up the minigun and started to mow down hordes of aliens; literally, painting the rooms red with alien blood :D

Platypus
http://www.squashysoftware.com/platypus.php
by http://www.squashysoftware.com/
Whilst it won't come anywhere close to being one of the top shoot-em-ups of all time, this is still solid. We found especially that the graphical style kept us wanting to see more (the entire game - even the effects, are made using claymation techniques. The whole game is built from photographs of plasticine models!)

Outpost Kaloki
http://www.ninjabee.com/outpostkaloki.html
by http://www.ninjabee.com/
Outpost Kaloki takes a well established genre and makes a very well polished pretty implementation that manages to avoid being too cliche by injecting just the right amount of humour. Each mission sees you create your very own space station purpose built to fullfill the story linked mission objectives. You can add modules for entertainment, research, food production, defence and many more.

Bah - highstreet games - tsk tsk (shakes head), get in the indie scene. The games are different/unique (usually), they actually all run on my PC (eek! - faints) and you aren't lining the pockets of faceless corporations. Sure there are plenty of dogs, just like high street games, hence lists like these are great.

Starscape http://www.moonpod.com/Starscape/
by http://www.moonpod.com/
This is a classic top down any direction scrolling shootermup, imagine asteroids but then go nuts with the artwork and add a giant space station that follows you around like a portable base, multiple fighters docked within it, research, construction and customisation plus a pretty cool anime rendered story adventure.

Spacetripper http://www.pompomgames.com/spacetripper.htm
by http://www.pompomgames.com/
Whilst PomPom's second game mutant storm definitely has a hardcore appeal that we like, we've found ourselves coming back to their first offering more and more. At it's core a tribute to Williams arcade classic Defender, it'll leave you wondering why they don't make games like this anymore.

Alien Shooter
http://www.sigma-team.net/alienshooter/index.htm
by http://www.sigma-team.net/
A great control system (move with the cursor keys, and aim with the mouse) , and gorgeous graphics made this our favourite Robotron-A-like. Alien Shooter likes to take gore to the max. We were sold on it once we picked up the minigun and started to mow down hordes of aliens; literally, painting the rooms red with alien blood :D

Platypus
http://www.squashysoftware.com/platypus.php
by http://www.squashysoftware.com/
Whilst it won't come anywhere close to being one of the top shoot-em-ups of all time, this is still solid. We found especially that the graphical style kept us wanting to see more (the entire game - even the effects, are made using claymation techniques. The whole game is built from photographs of plasticine models!)

Outpost Kaloki
http://www.ninjabee.com/outpostkaloki.html
by http://www.ninjabee.com/
Outpost Kaloki takes a well established genre and makes a very well polished pretty implementation that manages to avoid being too cliche by injecting just the right amount of humour. Each mission sees you create your very own space station purpose built to fullfill the story linked mission objectives. You can add modules for entertainment, research, food production, defence and many more.

This rule becomes more true as you move towards consoles, since there is no way to grab an indie game demo on a quick download for your 360, and hence there is no development for consoles.

Sure, some of them are just old arcade games (like Joust) updated for online play. But games like Outpost Kaloki X looks like a good example of an indie game developer making a name for themselves on the Xbox 360.

Again, I'm not a console gamer. I just read about this in a rather glowing Extremetech opinion article by Loyd Case.

If you're lucky enough to have a 360, you can play both Outpost Kaloki (original, 360) and Wik: Fable of Souls (original, 360. Mutant Storm (original on Windows, Mac, and Linux, 360, original Xbox Live Arcade), the winner from 2002, is also available on 360 and was available on Live Arcade on the original Xbox as well. On the 360, these games go for $5-$10 (400-800 Points, where 80 points ~= $1), and Mutant Storm is $9.99 on Xbox. Compare that to $20 for the PC versions of Mutant Storm and Outpost Kaloki.

You're selling the launch games a little short. There's definitely less variety than maybe would be ideal, but that's generally standard for a console launch. You're not going for the mainstream gamer in the first few weeks of sales. It looks like MS is going to have a hard enough time meeting the demand of the hardcore gamers as it is. You simply always go for the more dedicated gamer first, mainstream gamer later.

And you do have to recognize that this is the first time a console has been launched in the US first in a long time (other than the original Xbox launch, of course). We aren't seeing the six months or so of post-launch Japanese games that we had for the PS2, Gamecube, Dreamcast, etc. It really needs to be compared to Japanese launches, which AFAIK have always been far worse when it comes to variety.

But anyway:
Tastes vary, so what if you like RPGs?
Definitely an issue, but a fairly standard one. No console that I am aware of has ever shipped with a good RPG.

Or platformers?
Kameo definitely qualifies, even if you are trying to lump it into the nebulous "adventure" category. Arguably so does Tony Hawk (not that anybody should waste their money on the glitchy 360 version, but it still exists).

Or strategy games?
This is another problem area, but also fairly traditional for console launches. I do believe Outpost Kaloki X still qualifies though.

Or puzzle games?
The $400 model includes a complete puzzle game (Hexic HD - by the creator of Tetris) as a pack-in. Xbox Live Arcade features plenty more, Bejeweled 2 probably being the most prominent. This is not a problem area.

Or like racers, but prefer not to play realistic ones?
Ignoring the fact that PGR3 is clearly an arcade-style racer, how about Ridge Racer 6? There is nothing remotely realistic about that game!

Or beat-em-ups,
Arguably Condemned, but let's be honest - this genre has been out of fashion for quite some time.

or shoot-em-ups,
This is one area where the X360 is actually doing far better than normal. It pleases me to see this, too, since this is maybe my favorite genre of games. Geometry Wars 2 alone looks to be a total classic (only $5 too, unless you get it free with PGR3), and you also get a few other games on Xbox Live Arcade like Mutant Storm Reloaded, Smash TV, Robotron 2084, etc. (the latter two are also $5). All of these feature online scoreboards and I believe online play where appropriate, which is pretty cool. I know you are pretending Geometry Wars 2 isn't a must-have game, but I literally know people who bought PGR2 for its much simpler predecessor. It's going to be a must-have for some people, just like a lot of the launch games. Even a supposed universal must-have title like Halo 1 wasn't even bought by the vast majority of Xbox 1 owners (only about 25% did, IIRC).

or hack-n-slash,
This is distinct from a beat-em-up how? No cheating! ;) But still, how about Gauntlet (online play, $5)?

or sims, or ...
So wait, is PGR3 a realistic racer or not? ;) Though I admit this is such a broad category I am not sure what you are specifically referring to, sims are another genre that has practically died out in the past few years. But I'm not aware of any other console launching with a sim anyway. Would some of the sports games not qualify?

Also worth bearing in mind that instead of doing the price conversion companies will frequently just port the numbers. Wouldn't be surprised to see UK prices get hiked to £59.99 for premium games under this extortionate policy.

Bring on the indie games. Outpost Kaloki is ace fun and only cost me $10 ish.

I work for a game company that recently attempted a humorous game. It's absolutely true that you ignore the jokes after playing it a few hundred times, although I can't imagine that anyone but a developer would have the patience to replay that game as much as I have. It usually gets a laugh out of first-time players, so that's worth something.

At any rate, I think it might be the first attempt at a humorous simulation game -- it could have been called "Space Station Tycoon," but it seemed icky and unoriginal to give it a name like that. It's a pity, it might have sold better.

Be forewarned that I wrote more than half the jokes. If you lambast my game, I will probably cry.