Originally Posted by Astrotoy7
There's a bit more to it than that. Different slices of the market have been affected to a different degree. Those with greater economic responsibilities such as mortgages, school fees etc are being much more selective when buying titles. I definitely am! I just bought assassin creed for PC and another game on a '2 for $50' sale the other day. AC is usually $90+ here, and there's no way I'd buy it at that price.
The pre-owned market has become increasingly stronger as well. A representative of EB said so for here in Oz. I doubt it would be different in the US, though Groovy could confirm that.
Actually it's been found that people actually gravitate more towards media such as movie discs and video games during times when they're short on money. Apparently it's because in the long run it lasts longer for them rather than activities which take them outside of the house which have a lot of extra costs and are more short lived.
I'd link you to the article(s) for this but I'm too lazy.