I think some of you who are posting in this thread didn't notice the following quote:

Then he goes on to talk about cloud computing. What he's saying is that the functions of the CPU and GPU will be done by "the cloud" (i.e. a mashup of processors scattered in the internet which are connected to a distributed computing network).

The problem with this is that interactive gaming requires full-duplex interaction, it's not just a server pushing a stream of images as in youtube. Forget frame-by-frame interactivity, welcome to a world where each frame of a game was computed (at least) tens of miliseconds ago by a collection of CPUs around the world.

I don't know if I'm being explicit enough, but I think at least some of you can see the problems of such an approach. It's the Network Computer fad all over again, and many of the problems of thin clients rolled into a single analyst's wet dream.

Consoles won't die out so soon because of one basic thing: they are cheap (low costing) source of gaming. For PC, you have to upgrade your PC every 6 months or so to keep up with newer games (mine is at least 3 years behind). For Consoles, you simply buy it and you can run any game released for it, no system requirements at all. With advancing network and hardware technology, consoles will advance too. Web services will be better, offering more and more things and options for gamers and other people. Following generations might last longer if hardware will cost more to develop.

There's no way to stop console gaming as we know it, unless either every big company (like Sony) will bankrupt or there will be end of the world.

Well, there were analysts in the 70's predicting that Microsoft was founded on a worthless backdrop with no market, IBM chairman mused in the 50's that there was a global market for about 5 home computers and in ancient times radicals were laughed at when they purported that the earth was round and that it revolved around the sun rather than the opposite.
What does this tell me? People in respectable positions have been sorely mistaken before and it does not seem to want to let up so easily.

Why are so many people suddenly predicting console gaming to die out?
What about when everyone said the video game market wasn't viable after the Atari Crash?

I don't believe one word of what this person, or others say about the console gaming crash.

What a loony

i dont see that happening the video game industry is bigger and more porfitable than movies and its still growing.

I read the title and thought when are analyst even close to being right.

I read the first sentence and thought the Wii says hello.

Convergence is BS, they have being saying it for along time but it never happens and most likely wont in our lifetime.

While there may be some convergence this is just not going to happen that fast. I think ten years may be reasonable on this but certainly not 5.

He's real smart huh.

he's an idiot