Well yes with the NPD day some monke.. I mean analysts go into conclusions, and now they took ovr the racing games:

"None of these games were rated higher than 80, so I think people are waiting for Gran Turismo 5 and Need For Speed: Hot Pursuit this fall.

Janco Partners analyst Mike Hickey says the underperforming sales are likely due to a number of factors, including an oversaturated market.

"Recent iterations from racing franchises have underperformed our expectations including: Need for Speed, Midnight Club and Blur," Hickey told us. "The genre's sales performance has likely suffered from oversaturation, changing consumer preferences and seasonally less significant release windows."
http://xbox360.ign.com/articles/110/1103488p1.html

So yes it's because the oversaturation .... I can't wait to see the oversaturation effect on FPS I guess.

Sup, homies?

I dunno.  A racer tends to last a lot longer than an FPS.  FPS's (and to be honest, there's only a handful of series that consistently sell extremely well) have short campaigns and addictive multi-player.  The main story is over pretty quick so it's time to move on OR the multi-player is fun but the next big thing is always coming out.  Graphics, features, maps, weapons--with FPS's, they're always evolving.

With a racer, the single player can take months to perfect.  The graphics of an early racing game are actually comparable to a new racing game.  The multi-player is "you race your friends to the finish line".  We've been there.  We've done that.  I used to LOVE racing games.  Now, I'm content to play Burnout Revenge (which is about four years old) when I need my racing fix.  I don't feel like I'm missing out on too much.

Keep in mind, this is just opinion.

Sup, homies?

Well there's no doubt in my mind that the racing genre isn't as popular as it once was.  

I presume you're excluding kart-racing?

Honestly I dont understand how games like GT sell so well. I understand how Mario Kart and Modnation sell cause they are accessable and easy to play. Games like GT are for car junkies who want a super real experience which to myself is just too difficult. Most people I know that own(or have owned, I only know one PS owner this gen compared to like 50 PS2 owners) GT games will attempt to play them and show them off cause they look good but they cant play for shit and never actually play. Its amazing that GT sells so well(though it is the definitive driving sim) cause I dont know a single gamer that wants to take the time to learn to drive a car at 120 miles an hour. All that is really needed is a GT and a Forza as far as sims go cause everything else is probably lesser and not worth the money.

Hmmmm I always thought GT series a little too easy. Some of the  complaints over past GT series  was you could ride the walls around the track as well as  ride against the other cars around the corner. I always tried to avoid these exploits.

Supsupsup? Homie?

Just 1 year ago:

“From a business perspective, we are targeting Blur to do for racing what Call of Duty did for shooters,” Activision CEO Michael Griffith stated. “That was the goal when we originally acquired Bizarre Creations to make this game.

http://www.mcvuk.com/news/34221/Activision-Blur-will-do-for-racing-what-COD-did-for-shooters