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Lastgengamer said:

I suppose the reason could be because this gen has peaked.

So what does everyone think is the cause of this sales decline are we experiencing a gaming rescission?

Normal people have more to do with their lives than play games.  There is definitely a chance of oversaturation.  If the industry keeps overproducing content in an area where people feel they have enough, the sales will decline.  And improving graphics, etc... isn't going to change that.