http://ca.finance.yahoo.com/news/Video-Games-Face-tsmf-4237746320.html?x=0
Although the market for video game consoles is evidently dropping from the previous years, but I do not consider that a detrimental threat to the gaming market. Even if the gaming companies would drop the price of consoles by a substantial amount, the quantity demanded of the consoles would not increase that much; since most of the customers who value consoles highly have probably already purchased the products.
The revenue from gaming companies is not dependent on the sales of the consoles itself, but is more dependent on services (like x-box live) and the sales of games and accessories. Although the sales of more consoles would definitively boost revenue of directs sales of consoles and sales of games (since they are complements), but overall it would not change much since these new consumers do not derive as much value from the product than hardcore gamers. Most of the revenue are from the sales of games and services which are mostly consumed by the core gamer community who all highly value the console and gained much consumer surplus when buying the console even at it’s peek price. So I find that the lag in sale is normal and that those companies should concentrate more on the quality of the games and it’s services than on the sales of the console itself.