To put some perspective on December NPD numbers, people have to understand that early projections by industry analysts (retail sales) for December were that retail sales were off. The belief, in eary December, was that shoppers had taken advantage of Black Friday deals. Especially on high-end gift items. Subsequently, November saw extraordinary increases, and December saw extraordinary decreases. Year-end projects suggest that some retailers did end up doing well in December, but clearly gaming took a hit.
It would be easy to draw a conclusion that gaming is suffering due to the industry saturation in the US or fatigue with this generation. The reality is that this downturn is the result of a weakened economy and shoppers having to take the best deal or hold off buying altogether.
A woman I had corresponded with dealt with this very struggle. Her son wanted an Xbox 360 for Christmas. Well before the holiday season started, I told her that retailers would be offering tremendous deals for an Xbox 360 on Black Friday. When the Black Friday specials started hitting the Internets, I forwarded that information on to her. In the end she had to decide not to purchase a console because she just couldn't swing the cost.
I don't think she's alone in having to make those kinds of financial decisions. I think she, along with a great deal of the nation, made one or two big-ticket item purchases and then purchased necessities.
I think a price cut on the Xbox 360 is inevitable. Maybe a little sooner than Microsoft expected to.
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