This is the thing... it's NOT a declining market. If it were declining, the total sales that distributors are reporting would be going down, and they are going up, dramatically. At the same time, I do believe that retail prices have and will continue to drop. This is the main reason why bricks-and-mortar stores are doing so poorly; they are used to obscene markups (a DVD they buy for $30 going for $85) and they are getting killed by the online retailers who are more reasonable (the same $30 DVD goes for $45-55)

The major thing that's happening as far as units sold is there's a ton of crappy product on the market, so instead of 50 studios selling 3,000 to 25,000 units of a title, there are 1000 studios selling an average of 400 units per title. The biggest players are still selling in the thousands or tens of thousands of units, but their numbers have declined because of all of the little studios selling a couple hundred units. But overall, the total number of units sold is increasing.