So the world economies are in the middle of a recession. But the game industry was Teflon coated and kept on booming, having a record Q4 '08. But not any more, the retail/high street side of the industry has hit a brick wall.
The first problem is that the consoles are too expensive. The Wii is still at launch price and the PS3 is still at the price when they stripped out a lot of its capabilities, whilst the 360 has gone a long time since the last price drop. So we are only selling about half the number of consoles that we should be. We all know that all three of them are coming down in price later this year, why not do it now and benefit from the extra game sales such a move would bring?