Gamings biggest competition is time. When the PlayStation launched, we had Sports, TV, PC, Radio and perhaps a walkman or gameboy that's it. When the Wii U comes out it'll have to compete with Sports, TV, smartphones, tablets, social media and other time consuming products and services. Netflix as a 'product' isn't the competition of Shadow Complex but the time people spend on netflix is. As the economy stalls we also need to work harder to be able to buy the same products thus losing more time in the progress.
When you took a train 10 years ago you could either listen to music, read or play on a gameboy. These days you can chat with your friends, browse facebook, listen to music, watch videos, check the news etc. the biggest saving grace for the handheld gaming market are the bandwith caps that the phone companies want to install or have already installed.