The market isn't that big, I know lastgen there were less gamers but lastgen the total number of consoles solds worldwide was around the 180 million. We're about 45 million short of that this gen, say we get up to 250 million consoles this gen then there are about 110 millions tobe bought consoles this gen. So say that the 360 will take 30 40million of that sounds insane unless the PS-wand fails compleetly and the Wii stops being as succesful as the PS3 and 360 combined.
Nope, the console makers (as in Sony and Microsoft) might have a 10 year plan but the market eventually has enough. If they hold true to that 10 year plan then Nintendo will come out with something new in that time and grab the mainstream market once again.