Microsoft and Nintendo both have poor console offerings this generation (Wii U, XB1). I love the 3DS but it had a poor launch, and has always been overpriced. $200 for a handheld, when a fully fledged console costs $240 net? The Vita on the other hand was a disaster.
So yeah, overall hardware sales have dropped. But the good news is that combined XB1 and PS4 sales are ahead of the PS3/360 sales year for year.
So it really depends on how you look at the data. You could lump all hardware sales together like Micheal Pachter does, and then proclaim that the market is shrinking. Or you could be smart enough to realize that Nintendo's failures are it's own and have nothing to do with the rest of the market.







