Summing it up (Score 5, Informative)

I think that a quote from the end of the article sums it up nicely.

Doug Lowenstein, president of the Entertainment Software Association, deemed the industry's troubles to be "cyclical and entirely predictable." What's important is that gaming is growing in popularity, and consumers will continue spending as the industry works out its kinks, he said.

"The early adopters all know what's going on," he said. "They all expect the PlayStation 3 this year. That always tends to slow down purchases for the current platform, no matter how good the current games are. They're sitting on their dollars more than they will be a year or two from now."