You have to look further into it than total software sold.

How many people own PS3 compared to PS4?
How many people own 360 compared to One?
How many people own Wii compared to Wii U?
How many games are available to buy on PS3, Wii and 360 compared to PS4, Wii U and One?
How many more people are actively going DD-only on Gen 8 compared to Gen 7?

Look at the YoY drops on PS3/360/Wii software. Those drops will be bigger in 2015 while the Gen 8 systems will see YoY increases as userbases grow and more games release.

This is a natural thing and 2014 is a transitional year for Millions of gamers.

There are many more games out for last gen and a wealth of gamers that haven't upgraded yet. Were last gen software sales supposed to fall off the map as soon as this gen hit? Because, I mean, it totally makes sense. "The new Xbox came out. Guess I won't buy any 360 games anymore...even though I don't have the new Xbox"

hmm look at it from another perspective.

on average:

every ps3 owner bought 1.1 games this past year.
every ps4 owner bought 3.4 games.

The ps4 is fast approaching a quarter of the ps3's total consoles sales in little over a year. Those software numbers look good to me.

Nothing surprising to see except I didn't expect the software numbers on the Wii to be that high. 

as others have said already, it's not really surprising.
Next year should look vastly different.

And PS4 retail software is overtracked as well (apparently 81 million total, including digital as of 2nd january).

That's normal. Well the Wii > Wii U bit isn't normal, but y'know, Wii U.

Not crazy at all, PS1 was still pulling great numbers after the PS2 came out and the samething happened with the PS2 when the PS3 came out (I believe that total software sales of the PS2 in 2007 were close to that of the 360 and PS3 put together).

I think these sales don't represent all sales as Digital is getting a lot bigger.