The numbers are pretty freaking bad, and the fact that they can't have a new console for anotheryear and a half at minimum worries me. How bad will the sales get? I think they shoud have been more prepared..

Nope, not at all

Right, because the problem is not having new, expensive consoles on the shelves ...

You worry too much.

Both systems have a couple of price cuts still coming before the end of their cycle.

Obviously, when the price cuts hit, you'll see more buying.

You worry too much.

You guys, this isn't just about hardware. Software is displaying extremely depressing numbers.

It could be due to the generation becoming extremely stale as new AAA ideas are rare and almost everything is a sequel. It could also be due to the middle market falling out and the industry shifting towards more casual or more AAAAAA-centric. The rise of PC gaming (this feels weird to say) and digital gaming could also be the cause. There are lots of potential reasons why this crash is happening.

But it IS happening.

Now, I wonder how the picture would look if all digital games bought on the PC were counted in this. I would imagine that if you count the entire mobile sector, the industry as a whole hasn't shrunk revenue wise.

But retail console gaming ("traditional gaming") is having a severe problem right now.

If I'm incorrect, please correct me:

This generation started with the Xbox360 6 and a half years ago. This holiday, the console will have 7 years on shelves without a succesor. Last generation, PS2 launched at 2000 has only six years without a successor released.

During last generation PS2 sold 100M, and Xbox+GC around 40-45M for a grand total of 145M*. This generation PS2 sold 50M, Wii 95M, PS360 130M for a grand total of 275M. We're almost doubling hardware sales.

For the software side we have a Call of Duty released every year, lately the same with Assassins Creed. 3 Uncharted, almost 4 Gears of War. Even 2 3D Mario games in the same console. And this year Nintendo is putting 2 2D Marios in less than 6 months one from the other.

Developers need to release something new to make people spend their money, but right now the hardware sales will not go up until a new platform comes.

*I know I'm not counting PS1 sales during PS2 life's, so if anyone can provide a estimation will be good.

Problem is the 3DS and Vita are selling poor and attrociously, respectively. The handheld market is dying. Or, rather than saying such a stinging word, the handheld market is having severe issues. Issues most likely caused by mobile/tablet gaming.

Software is completely down for all 7th gen consoles. New games released are underperforming and, as you said, we've been running into annualized sequel-itis. I'm sure a new generation of consoles can kickstart the artistic ingenuity in developers and bring some new products to the table, but will the software really recover? With budgets rising so high and the middle market effectively falling out (mobile/social gaming is growing, PC gaming is growing, and consoles are more and more relying on the few AAA titles to drive revenue as lesser AA, A, etc., titles are underperforming on a general basis.

The situation is grim for consoles from all angles. Especially since Microsoft and Sony are likely to push for another big technical ($$) leap with their new consoles. There goes the middle market.

I think Sony and MS are well prepared. The HW numbers may be bad but SW number are ok. 2011 SW sales were up yoy for PS360 and 2012/2013 SW should be the same as 2011 (around 150M) or slightly up.

Not.at.all.

People should stop screaming doom and gloom. NPD sales so far for 2012 have been around the levels of 2010 for the first 5 months. With an imminent pricecut this year for both HD consoles they'll still squeeze out some decent sales for another year or two. And PS3 sales are actually higher than last years in Japan.

Microsoft and Sony were correct in not announcing new consoles this year. With the US about to have major fiscal challenges at the end of this year (and an election year) and with Europe in shambles, now is not the time have a system sold to the masses. Should they have announced a new console was on the way? perhaps, but I think being a year late to the party is not going to hurt then in the long run either.