Retailers are preparing for a major shift in holiday purchasing in late 2010, away from large items for the home and toward mobility and gaming.

A report in the Wall Street Journal quotes the CEO of Best Buy as saying the iPad is cannibalizing notebook sales at Best Buy outlets by “as much as 50%.”

The article details how retailers are adjusting their buying plans for the holiday season, with greater emphasis on mobile devices such as smartphone and tablets, and entertainment consoles, and less emphasis on large TVs and desktop or notebook computers. The iPad, along with smartphones running from Apple or from various vendors running the Android operating system from Google, are currently the market leaders.

“People are willing to disproportionately spend for these devices because they are becoming so important to their lives,” Best Buy Chief Executive Brian Dunn told the Journal.

Apple last announced iPad sales in June 2010, saying 3 million had been sold since the product’s April 2010 introduction. A significant upgrade of the iPad OS is scheduled for November, which will further fuel demand for the device.

Referenced article: Retailers Turn to Gadgets in the Wall Street Journal.