Not only are they once again being bested for RPG sales by Pathfinder, but now FFG's Star Wars RPG has apparently overtaken them as well. The Pathfinder thing is old news; they've been beating 4E regularly for quite some time now. The Star Wars thing is new, though, and I think D&D's weakness in the retail sector is driven largely by the perception that 4E is a lame duck, with everyone holding off major buying until 5E (DnD Next) comes out.
Sure, Magic: The Gathering is still undisputed king of collectible card games, and is their cash cow in the same way that Munchkin is for Steve Jackson Games, but D&D is a prestige title and it can't help but be embarrassing for them to be beaten consistently by a company they fired from publishing their D&D house organ...
Overall, though, the picture seems bright for the hobby gaming industry as a whole. Sales are up, new stores are opening, and more people are playing. Which is a good thing, regardless of what they're playing.
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