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Faxanadu said:
Market is saturated. No need to buy new games for old consoles anymore as the ones most people have by now are sufficient. Therefore, a new hardware is required to sell games again.

This is correct. The huge install base of Wii, PS3 and X360 doesn't matter when people already own enough games for their consoles and aren't as interested in buying new ones. And the numbers prove that SW sales are declining. 2013 will be even worse.