Predictions:
Nintendo's graphics will be just about the same as they are right now. We'll all go WTF. However, WTF + Nintendo = Epic win.
Sony will try to drop their prices hopefully, but won't copy the Wii as they'll have at least marginal graphical upgrades in attempts to wow the core. Sony's first party will never match Nintendo's, and right now, they are about as successful as they will ever be with first party games...unless they go casual. The most exciting thing about this console will be its launch price.
Microsoft might not even have a console next time. It is entirely possible Live and all of the other properties MS uses on the 360 will be switched over to games for windows. IMO, this is the most likely scenerio. A device will be made that is basically a disc drive that facilitates a standard medium for Windows based computers. MS might even start an Xbox brand of graphics cards. The PC sector with this move would become much more uniform in a standard that would be set, but not in stone, around the time of this new devices launch. Most games would have their main modes specifically designed with that standard in mind. The pricing would be between 500 and 700 dollars to build a 360 spec PC, of course, with high end models available on the free market as well as a high end 360 drive. What's the drive for? To prevent piracy, and require you to own it, in order to play new Windows games. Around this time, PC gaming via HDTV's will be much more widespread. You'll likely have a line out from your graphics card ran to your Samsung in the living room, if you so choose, and the 360 will kickstart that trend.
I don't need your console war.
It feeds the rich while it buries the poor.
You're power hungry, spinnin' stories, and bein' graphics whores.
I don't need your console war.
NO NO, NO NO NO.
