"The uncertain video game landscape has everyone playing wait-and-see

With all the hype surrounding the year-end launch of Microsoft's Xbox 360, you might be surprised to know that the video game industry itself took a beating in 2005. Transition years -- in which new consoles arrive even as older ones still show life -- are always as awkward as puberty. Many gamemakers have to capitalize on the vast number of existing game systems already bought and in homes, yet yearning to dig into the flashy new stuff.

Consumers largely felt the same way last year. November game sales -- supposedly the biggest month of the year due to the Thanksgiving shopping frenzy -- fell 18 percent, compared with November 2004 sales. And that was the same month that saw the debut of Microsoft's much-hyped Xbox 360.

The 360 isn't the only reason video games had a tough fall. Sony and Nintendo have been talking more openly about their new consoles for 2006 -- the PlayStation 3 and Revolution, respectively. With all this new hardware in orbit, who can blame consumers for not buying a PS2 or Xbox game?" [more]