It's true that the PS3 has been quickly increasing in sales while the Xbox 360 has been declining. It is a little odd that the 360 is declining in sales, which although aren't always on top, they usually remain strong. What could be causing this problem? Will this decline in sales continue until the holidays. Only time will tell, but I highly doubt it.

DFC Intelligence—which I assume to take the physical form of a giant, flaming emerald eye—has surveyed the console landscape with its all-knowing gaze, issuing its forecast for the coming year. It's unsurprisingly good news for the Wii and Nintendo DS, but less positive for Microsoft and its Xbox 360. With even the PLAYSTATION 3 looking meet the firm's forecasts, it's a little puzzling that they consider the 360 to be "running behind where they should be to maintain a strong market position." DFC even warns that Microsoft may "flirt with numerous unsavory scenarios" (ROWR!!) including a third place showing in the console marathon.

The DFC intelligentsia are concerned that "If consumers are not lining up to buy an Xbox 360 this holiday, Microsoft clearly has problems" and think that Microsoft is going to have to do something drastic to get its console in the hands of more consumers. How about a thud of a price drop? Would that work for you, DFC?

While Microsoft's minor price drop across all SKUs hasn't seemed to wow gamers, the DFC eye does warn that Sony will need to be "more aggressive on pricing" if they want to bypass its American competitor. Lots more analyst brain waves at Next-Gen.

Supernouva via kotaku.com »