That article is even worse. It fails to account for market saturation and the relative lack of good titles compared year over year.
At this point, pretty much everyone who wants a Wii, 360 or PS3 already has one, and - if they don't - the folks buying them now are likely buying them due to dramatic discounts.
September 2011 included Dead Island, Resistance 3, NHL 12, Gears Of War 3 and FIFA 12. (From
2011 in video gaming - Wikipedia, the free encyclopedia)
September 2012 included NHL 13, Borderlands 2 and FIFA 13. (From
2012 in video gaming - Wikipedia, the free encyclopedia)
Gears Of War 3 sold 5.6 million copies (
Game Database, Best Selling Video Games, Game Sales, Million Sellers, Top Selling - VGChartz), Dead Island sold 2.3 million, NHL 12 sold a million or so which is about 4-5x what NHL 13 sold, etc.
Occam's Razor is fairly simple - it tells us that the hypothesis which makes the fewest / least complicated assumptions is often correct. In 2012, game sales might be down because consoles are - ZOMG! - like, DYING. Or something.
Or game sales might be down because not as many high-profile or good games were released in 2012.
Compare the games released in 2011 to the titles released so far in 2012. There was a LOT of great stuff that came out in 2011, and not as much in 2012 (especially considering the titles delayed until 2013). I wonder if, next year, a spike in game sales of anticipated titles that were finally released will in turn lead to articles which read that increase as excitement for the release of the next console generation.
Also, this: "There have been a lot of great games to be sure, but fewer must-haves — the kind that truly take the medium into uncharted territory." Written like someone who is well and truly clueless about video games.
Finally, look at the sources. Zynga is not going to say the console is alive and well. A guy making his money off mobile / social gaming consulting is not going to admit that the mobile gaming market is inundated with shovelware. It's a poorly considered piece of analysis because it fails to account for a number of factors, each of which contribute to declining year-over-year hardware sales, and a decrease in the number of games sold in 2012.