Games are being held back by cultural stigma. At its core it's a new artistic medium, just like moving pictures (film) was back in the early 20th century. Imagination is the only limit here, but society at large still thinks "video games" are for kids. Perhaps if it was called interactive entertainment or something like that, people would be more likely to get into it.
That's one data point. If you compare it to movies and shows, the audience skews a lot younger. If you ask the average person their perception is that they are too busy to play games, yet they probably spend many hours watching movies and shows.
It's not as much as it was 10 years ago, but the perception of wasting time is still there. I'm mostly talking about the US though.
