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JWeinCom said:
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Well the market will increase with new consoles, at least in the short term.  Hardware is definitely up YOY.

As for good games selling, not always.  Just ask Wonderful 101, Puppeteer, Tearaway, and so on.  Sadly, a lot of great games don't sell well.

The object isn't to sell well, the object is profit. If those more niche games are good enough for their intended market and have an appropriate budget, they can make money.

Hardware increasing means nothing for the market. All three companies lose money on hardware. Them selling well while software does badly will only cause greater losses.