Well it depends if both are willing to sacrifice this generation early haha. I definitely expect some SKU changes but right now if we see another round of pricedrops (360 followed by PS3 and eventual Wii) then this generation will be sacrificed by 2011. For MS and Sony this would be really bad if they ever had any intention of making some form of profits off the system.
Now I'm not saying it won't happen, but if we see another string of pricedrops in 2010 you can almost certainly believe that the 7th generation will end very soon. Definitely wouldn't work with Sony's 10 year cycle and MS who is launching Natal in 2010 would definitely be suggesting that another console is going to have it as well in 2011.
Maybe Pachter realizes this and is trying to suggest this generation will be about a short as the last but it definitely wouldn't fit models stated by all 3.
Personally I DO think that MS will drop the price of the 360 slightly and that Sony, Nintendo, and MS will all have some form of a different SKU during 2010. But if the big 3 get into a price war in 2010 like what happened in 2009 then you can expect N6, PS4, and Xbox 3 all very very soon.