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The sheer number of games probably does have a bit to do with low sales for long-running games this year. I would also argue that the generational transition is hurting third parties. I think there are a lot of PS2 owners that are taking a wait and see approach because of the high prices of the "traditional" consoles. At the same time, they may be losing interest in their old console. I loved my GameCube, and there were a few games that interested me last year (Chibi Robo, Geist, Tomb Raider) but I didn't buy any of them because all my attention was on the next-gen systems.