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Farsala said:
Less consoles, but more profit per console. Also, it is essentially flat in my book. A lot of consoles in the 6th and 7th gen had hardware issues.

Yes, there were many replacement consoles inflating the numbers last gen.  

On the other hand, upgrade consoles affect the numbers for this gen.  I guess many of the old ones end up in the used market, which does expand the base.  But, certainly some end up just collecting dust in the closet.