The Fighting Fantasy co-creator and lifelong Eidos president made the comments on a panel discussing the point of video games at the GameCity Prize jury announcement.
"To defend the [comment that] games have no innovation, this is the second golden age of games that's right now because of the internet and mobile devices," he told an audience including Digital Spy.
"Connected mobile devices are going to be the biggest gaming platform, the end, full stop, by as soon as next year, I'd say.
"That's where small, innovative, agile teams can create exciting content, express themselves how they want to. It's not all about the graphics, gameplay is the driving force behind any game, and new ways to playing and making new ways to express themselves is happening right now.
"Whether it's Minecraft, Moshi Monsters or a million other brilliant new things that are happening, of course, that's where all the innovation is."
He continued: "The console market is relatively mature, because it's quite limited by the experience of the controller, which is a complex piece of equipment, driving 3D characters in 3D worlds.
"So the cost comes in inventing franchises, they're obliged to do sequels, because if you spend $50 million dollars making a game you don't want to par back and hope for the next one is going to come in.
"So they're kind of stuck, but they're still driving innovation in technology. But the innovation, and the expression in the art form, is being driven by the internet and by mobile devices."
The first golden age of gaming is said to be around the early 1980s with the dominance of arcade machines.
Livingstone recently spearheaded a campaign to bring more engaging computer science education to schools.
He also recently judged the Make Something Unreal Live contest, which saw student teams create 3D games based on classic Fighting Fantasy books.
The GameCity Prize, which was founded last year as the medium's equivalent to the Turner and Mercury prizes, will have its shortlist revealed later this week.
> Minecraft wins first GameCity Prize
Watch Cliff Bleszinski judge the Make Something Unreal contest below: