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I agree with Rol. It's the old business model that's dying out, and it's Microsoft and Sony who are going to feel the squeeze. Microsoft have Natal prepping up as their Xbox 360 'relaunch', so they at least have a plan to push more significant momentum into 360. As for Sony, launching the Slim model this early into the PS3's supposed 10 year life cycle may yet come back to haunt them. Can the PS3 stay on the market for 10 years as a viable platform?

Nintendo, on the other hand, have side stepped these problems with Wii. They're in a position to launch a new machine within the next few years. I think we'll see one from Nintendo in 2012.