They're doing absolutely fine. The numbers will be big by Q4 2012 and stay big through Q1 2013, after that they don't need to do well, new hardware will be coming. Microsoft will probably cut the price of 360 within the next year and Sony might as well. Both companies are still making a shit ton of money from services on their consoles and game sales.

I think we're just seeing the effect of digital revenue streams cutting the retail streams. Something like FIFA Ultimate Team makes around $25m plus every year for each version of FIFA. The COD map packs probably produce over double that.... It seems logical that if millions of dollars are being spent on DLC and the like, that retail revenue will go down. You can throw in all the digital games people buy more and more of now too.

The only thing we don't know is how much is spent digitally vs being lost at retail... but theres no real reason retail shouldn't be falling as digital continues to gain more customers.

Rumor has it sony wanted to show some PS4 stuff at e3 but they didn't have it ready yet. but who knows.

this year would have been great if we saw new hard ware but = oh well next year will be a true console war if we are lucky.