DFC Intelligence’s new report states that the Xbox 360 may outsell the Wii by 2017. It currently forecasts the Xbox 360 may sell 46.1. million units, while the Wii may sell 42.1 million units.

“The success of Microsoft and the Xbox 360 during the past two years highlights a radical changing of the guard in the game industry,” the report says. “Much has been made about a steady video game sales decline in the past three years.”

“In reality, the decline has mainly been due to the aging console systems–and more importantly–because of Nintendo’s collapse,” the report continues. “Unlike Microsoft, Nintendo has been in a major downward cycle, much of it self-inflicted.”

I guess the reasons for the update may be because consumers are still buying the Xbox 360 for the Kinect, while the Wii U’s recent release provides no reason to for consumers to buy a Wii.

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