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The arcade will be around until the end of this generation of systems.  There really is no need in killing it as long as it can remain a cheaper option for the consumer.

 

The next gen consoles will probably not have the same kind of hard drives as we know them today.  There is something called a memristor that is being developed that will revolutionize harddrives making them cheaper and very much smaller.  (100gb in 1 cm surface area)  If this does come true we could see huge hard drives at dirt cheap prices.  



"If you've got them by the balls their hearts and minds will follow."

Quote by- The Imortal John Wayne, the original BADASS!