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This makes no sense. MS is already turning a profit and Sony will soon be turning a profit not to mention the PS3 indirectly is the reason why Sony will be getting royalties off of Blu Ray sales for many years to come. So neither company will leave the industry.

But even if they were to leave the industry, which eventually could happen though not anytime soon, it is pretty basic economics as to why Nintendo wont be the only competitor. With MS and Sony out many other companies will jump at the chance to get in the video game industry because demand for the non Nintendo gaming will still be there. If any of you really think Nintendo will be the only console maker left you are either retarded or under educated.