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Mr Khan said:
The better question: is the market in decline because Nintendo's in decline?

7th-gen growth is largely due to Wii/DS, after all. If Nintendo's dropped the ball such that they're not doing the heavy lifting anymore, how will the 8th gen stack up?

Could be the first instance of gen-over-gen decline in the history of home console gaming.

We'll see how PS4 and Xbox 720 sell. I think MS/Sony will do most of the heavy lifting next-gen a lot earlier than they did the 7th gen.
We could see a gen-over-gen decline but that could be due to the Wii U failing to take off. I doubt we'll see all 3 console be so successful next-gen.