This is a natural decline associated with the 5-6 years console cycle, despite new customers entering , perhaps for the first time, the market.
We are in the part of the cycle where every game has a 2,3,4,5 attached to it and customers have probably become a bit fed up. lost passion, about the current round of consoles. Furthermore this must be exacerbated by super cheap gaming on smartphones coupled with tight finances for most households in the developing world.
Sony seems to be in a better position to wheather this decline as they have the widest distribution network and brand appeal to penetrate countries hungry for western goods such as Russia, India, Brazil, China and Eastern Europe.
The 3DS will re-energize the market altghough personally Im not so hyped about it as all I have seen on it is sequels and zero new IP.
