The video game industry is not "recession-proof," as many have trumpeted. So far, the industry has seen a 12 percent decline in revenue in the first half of 2009 versus the same period in 2008. Sales of hardware have slowed down as well, with Nintendo selling 13 percent fewer Wii systems and PS3 selling 30 percent less. There are a few bright spots, however.

Gamasutra notes that Microsoft has "caught its second wind," selling a dramatic 21 percent more Xbox 360 units so far this year. (Aaron Greenberg was right!) This achievement is even more remarkable when one considers the challenges of this economic climate. Astoundingly, the Nintendo DS has also managed to increase its sales, which begs the question: Who doesn't already own one -- or two? When coupled with the newly introduced DSi, combined sales of Nintendo handhelds have gone up more than 56 percent from last year.

Sony continues to struggle with its PlayStation trifecta, as the aging PS2 slowly loses its relevance and consumers appear reluctant to spend $400 on a PS3. We'd continue this paragraph, but it's pretty clear what Sony needs to do if it wants to turn things around.

This article was originally published on Joystiq.