Research firm Parks Associates said the projection suggests another nail in the coffin for brick-and-mortar video stores.

Despite the tally, just 38% of households plan to make a CE purchase by Christmas compared to 50% during the same period last year, according to Parks.

“Consumers want deals; that is their trigger as economic conditions have made them more cautious buyers,” CEO Tricia Parks said. “Market players must stress the value and convenience of Internet-connected devices.”

Connected devices include connected game consoles, Blu-ray Disc players, tablet computers and media players. By the end of the year, more than 40 million U.S. consumers will have a broadband-connected game console, more than 8 million will have a PC-to-TV connection, more than 5 million will have a connected Blu-ray player and more than 4 million will have a networked media player, such as an Apple TV or Roku.

“Connected devices are the future of content consumption and entertainment in the living room as they capture the broader trends of integration among different silos in consumers’ lives,” principal analyst Kurt Scherf said.

From the article, "Report: 3 Million Households to Buy Connected TV for Christmas" by Erik Gruenwedel

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