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The current economic climate will slow down the next generation considerably. You can all push your dates out by a couple years.

Keep in mind that the current console gen was meant to take on the up-and-coming HDTV "revolution" (except for the Wii), and that they still handle said HD gaming just fine. The "next gen" will have a lot more 1080p games, but making that hardware *cheap* enough to sell at consumer friendly prices is the issue.

Economy... bad. Cheap hardware... delayed.  The perceived difference between 720p and 1080p gaming aren't even close to the difference between 480p and 720p, and many Wii owners will tell you that the difference is hardly noticable at all. (...on a 480i SD TV.  Okay sorry... I couldn't help myself.)