If you guys are freaking out right now about game console numbers - wait till you see how freaked out Apple and Samsung are regarding the future growth of smartphones and peoples' willingness to replace them in developed markets over the next 60 months.
By some accounts we are very close to sustained secular decline for the rate of growth in smartphone sales in the United States.
This is because of the rise of "Bring your own Device" plans that unpair your service from your smart phone. When people have to pay hundreds of dollars for marginal upgrades to their phone, they think twice especially if they can just pocket the difference of that monthly fee.
If there isn't a killer app developed for next-gen smartphones that motivates people to get excited about upgrading their phones at full prices then the growth prospects of that industry aren't too hot either beyond natural replacement rates. That might in turn have some positive effect on new consoles, but consoles are also looking for a hit game and nothing on the horizon seems to have that promise for now.
Anyways, the overall decline of video game sales has a silver lining. The industry can shrink and focus again on good design rather than modeling serial numbers and dog teeth to please a tiny audience of users.
I am ridiculously excited about indie developers and believe they will push new types of game play. I also believe if consoles are going to match last gen's userbase, it is going to be because of something amazing an indie or small studio produces. I see less probability in the "AAA" stuff driving demand going forward because those experiences aren't novel anymore.
What's more exciting: if these behemoth "AAA" studios slim down and a bunch just die out, we could experience another golden age of gaming where we get late 80s through mid 90s level awesomeness with teams of 5-30 people coming together to make well-designed games targeting a variety of users and needs. You will be able to play those games anywhere... on the iPad or your phone or maybe even on your new smart watch... with a variety of different input methods (from pedometer to camera to touch to traditional controls) and features...
Oh, and before someone mentions it... obligatory "These results came right after Pachter said 'This generation will be the biggest yet!'"