Let's leave motion control out, because it will already be established with this generation's console cycle.

Personally I hope it's just more polish: more games running at persistent 60fps in full HD, less texture pop-in, less lag online, more precise controls (motion control and otherwise), more detailed animations and character designs.

I think that non-motion control controllers need some kind of upgrading. I feel like games are capable of offering all kinds of gameplay options and detail in choice and controls, but they can't exploit all these options with the same 10-button layout.

Sadly, they're probably going to go for 2440p and all kinds of other bells and whistles and nonsense that doesn't have as much to do with gaming, and charge $800 for it at launch.

Interesting question. I believe that what we will see next generation is new and better interfaces/controllers. The Wii's success will assure that. I also think that there might be some movement towards gaming for everyone.

Naturally there will be an upgrade in processing power that will result in better graphics. We might also see further development towards multi functionality in the consoles, although I think that would be the wrong road to choose. I personally always want my tech to be single purpose, though I acknowledge that there is a significant market for multipurpose machines (cellphones in particular).

But whatever the next really big thing in games truly is, I do not believe we will see it next generation, but possibly the generation after that. It's also rather difficult to say what the next big thing could be. Some people would say Virtual Reality, others hold up platforms such as OnLive. If I knew I would be a very well paid man right now.

Separate, not seperate.

OT: Who knows.

dtewi shall reveal he is GBALLZACK

Yeah. You can tell by the kitty hentai in my photo album and my risque comments.

Yes and the fact your name is a "hentai" password into the world of pr0n

When one of the big 3 says so.

Well, first wish and expectations about new-gen come truth, Natal is there and it "feels like the release of a new console". The next consoles will come just when the difference of hardware to make great improves from this gen become somehow cheap and accessible, don't expect any system to cost more than 400$ in release.
For next console it self

They will push even more to HTPC. 1080P should be the standard for all the games and motion control will get hard improves from nowadays ones. I can't see much new stuff, just improves of what already started this gen.

Sony and Microsoft will have a motion control tech race, and Nintendo will make a console that disrupts the Wii.