This gen just started in 2004.... Hopefully the 8th gen wont start until 2013.
Sony doesn't need to rush into 8th Gen. They can use the PS3 to lag them, because it wont become as dated as the others, and all the people who've already bought 360's and Wii's probably wont be so willing to update by 2011, let them get some use from their systems. Nintendo's already going to loose out on casuals, because they'll be least likely to upgrade, as they'll probably still be satisfied with wii fit. And, some of the casuals have taken interests in gaming, but, who knows what system they'll upgrade to.
Maybe a lot of them will jump over to the PS3 when GT5 comes out saying "I can't believe this is a game.." My grandmother was over yesterday, and didn't notice I was playing Need for Speed Shift demo until near the end of the race. A neighbor was over a while ago, and couldn't believe the graphical quality of GT5. So, who knows, maybe when people see what the PS3 was actually capible of, they'll be more understanding of the 600 dollar price. That's when you tell 'em it's 299...
They don't need to skip the next gen, but, there's no reason why they can't wait a year or two, and just sell PS3s until people are willing to upgrade.








