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Ail said:

Well the fact that HD consoles hardware sales keep increasing clearly shows that this gen isn't over for them...


No, it just demonstrates that things are going better for them then they were initially ...

Whether you recognise it or not, by the end of 2012 console sales of this generation of hardware will probably be lower than 66% of their current level; and the vast majority of these sales will be replacement systems or additional systems purchsed to play a handful of games. Piracy across all systems will be dramatically higher, more people will be gaming on other devices (iPads, PCs, etc.), second hand and budget games will represent a larger share of game sales, and new games will be selling far less units and be far less profitable.

You're looking at the market the same way fanboys were looking at the market in 2004, thinking "look how great things are TODAY, there is no reason to release a console in the near future"; where the reality is that if you look into the near future there are a lot of significant problems that face these consoles.

 

Part of what you either fail to see or accept is that Nintendo is not going to sit around doing nothing and allow the XBox 360 or PS3 to "steal" users; and they're (most likely) going to respond with something that excites the market. Being that no console that is the successor to the market leading console has not completely crushed the competition when given a significant head start, I doubt that Sony and Microsoft are going to twiddle their thumbs and give Nintendo a 12 to 24 month head start which could translate into a 40 to 60 Million unit lead.