There has been a massive move in gaming away from the home consoles and back to the PC. Tens of millions of people are now playing MMOs.
As a result sales of the PS3 and Xbox 360 are probably half of what they should be at this stage in the cycle. And sales of the Wii have collapsed.
Handheld consoles are in similar trouble, but this time from smartphones, the iPhone is the most successful new gaming platform in history. It has decimated sales of DS and PSP games.