Box office receipts have fallen for the third year in a row and as you can see from this article, Hollywood still wants to blame the fall on DVDs and video games.
They just cannot accept the fact that is it type of movies they are making that are driving average Americans away from the theater. The give us films about gay sheep-hearders (not that there is anything wrong with that, I don't want to see a movie about straight sheep-hearders either), movies that equate murdering terrorists with those who fight them, and badly-made remakes of ape movies, and then complain when we don't go see them. They need to realize that Americans do have choices now and that until they change we will exercise those options.
To paraphrase Jack Twist in Brokeback Mountain, "We can quit you."