That has had many opportunities to replace video games yet it hasn't ever. Video games actually earn MORE than movies on a consistent basis, and the reason we don't see it happening or see any news about those numbers is because as movie/film/animation fans, we only read what we wanna read, and play/watch what we want to see/play. Movies will never replace games as far as I see, because in games you are connected to the gameplay. You can physically move, exercise, develop your problem-solving skills, develop your reflexes, learn how to make decisions, and be IN a new world, whereas in movies you only act as a spectator watching something you have no control over.
Whether or not a trend replaces another in a form of media is never predicted correctly until it already happens. Hell, Netflix is a perfect example. A service that started as a video rental place has now single-handedly earned Academy Awards, and cut the average Neilson ratings in half, something that NO one predicted would happen. People thought Google glasses would replace smartphones yet we're still using phones, and the glasses have disappeared from the face of the Earth for a few years now.