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.
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