As most people in the hosting industry know VPS and VDS are becoming more and more popular every day.

They offer everything a reseller account has plus more, often a lot more which a reseller wants, ie. root access, a lot more freedom to do what they want on the server but still at a low cost.

With so many people starting a hosting business these days, are VPS/VDS going to take over the reseller market?
Is a reseller account going to fall behind and become the past of the industry?

I don't think it will take over you hosting industy. A lot of people use reseller accounts because they only know how to point click (control panel / web host manager), and can not handle the root part just yet.

I think VPS, VDS are becoming more popular with those who can not afford to make 75$ + a month payments on a server but would like to gain some experience managing a box.

Good question though.

I think reseller accounts will always exist but they may fade out a bit more in the future.. the reason I don't think they will EVER fade out is the real newbies for one, and for two, people that just want to host a couple sites and have control over them, which a reseller would be ideal for.

they be fade out little b/c they got dedicated server it little cheap

I think VDS/VPS is the next big thing. You will start seing a good price break in reseller accounts.

For example: Servers will be $99 +
VDS/VPS will be $30+
Resellers will vary from the lows < $10 to upper $50's

Good point, I didnt even think about the price change in reseller accounts with VPS becoming ever more popular.
Maybe this will mean a lot of shared customers will move to reseller accounts with them becoming cheaper....so maybe reseller accounts wont die out as quickly as I thought

John,

Good example, look at my site. http://www.turnkeyresellers.com

I don't even offer shared hosting anymore. Resellers are as low as shared hosting, then the VPS is more like the old reseller prices.

Servers hasn't changed... Hardware prices don't go up and down that often.