It probably will lower the sales a bit, but not by a lot. People have less money, but they also want something to have fun with. Consoles aren't that high-priced - I've done a test with myself as bunny, and I found out that on my Wii, I have used less money pr hour than I would have by watching a movie with 2 others (price split in 3).
Small companies might get frightened by making games to a possibly declining market, so perhaps we will see more Japan-style games (O.K, that's maybe just wishful thinking)
http://www.vgchartz.com/games/userreviewdisp.php?id=261
That is VGChartz LONGEST review. And it's NOT Cute Kitten DS







