My Sears also greatly reduced their clearance section. It was three shelves last month, and now it's just one. The massacre apparently claimed the life of Professor Layton and the last specter, which I was hoping to get for $5!
Anyway, got the 3DS RE Mercenaries for $5, but that was it. I scanned a random sample of - Mafia II X360, Press your luck Wii and Michael Jackson PS3, and none of them had dropped. On another note, I did see they had Assassins Creed III, so they're not entirely done with gaming.
BTW has anyone seen PSP systems at Sears? Any movement on those?