The concept of "the singularity" has gained popularity both with science fiction authors, and with futurists. There's a movement out there of people who call themselves "Singulatarians", some of whom have earned the singularity the nickname "rapture for nerds" -- for them, it's not just speculation, it's a fervent belief.
However, for your setting -- gaming or fiction-writing -- there's no reason to view such a future as inevitable.
http://en.wikipedia.org/wiki/Technological_Singularity#Criticism
In addition to general criticisms of the singularity concept, several critics have raised issues with Kurzweil's iconic chart. One line of criticism is that a log-log chart of this nature is inherently biased toward a straight-line result. Others identify selection bias in the points that Kurzweil chooses to use. For example, biologist PZ Myers points out that many of the early evolutionary "events" were picked arbitrarily.[24]
The Economist mocked the concept with a graph extrapolating that the number of blades on a razor, which has increased over the years from one to as many as five, will increase ever-faster to infinity.[25]