"Why should anyone even bother reading something from a bunch of researchers outside of the industry anyway," you ask? Actually, DFC has been covering the games biz ever since 1993. They've been around the block a few times, so even if you don't like what you're reading here (and if you're a Sony fan, you won't) it's still just food for thought.
Lots of research and 600 pages later, they've come out with a comprehensive forecast of the industry. What they say is that "two things are clear: 1) the high price of the PlayStation 3 is going to slow overall industry growth, especially for software and 2) if Sony does not change its current strategy for the PS3 the system will probably end up in third place in installed base. Microsoft and Nintendo have been handed that golden opportunity and both companies have a chance to make their systems the market leader."
What's this about software growth and Sony inhibiting it? On the contrary, with their free online platform, Sony could be poised to offer all kinds of commercial and independent (heck, even homebrew) games to a wider audience right out of the box. This could be just as much of a golden opportunity if they play their cards right. As for Blu-ray and the other software medium, we've already heard from one developer that he believes it could make all the difference. So take this analyst report as you will, the rest of us are waiting for November.