It appears this gen can't give full effect to the implementation of 3D gaming. Given 3D gaming is where at least some parts of the industry wants to go there will need to be at least one more console generation.
I do think the time between console generations should lengthen though. It's pretty evident that there is more juice to squeeze out of the PS3 and 360 at least (Alan Wake should show developers that there's untapped potential still in the 360, developers already know that the PS3 hasn't been nearly tapped out), and there is probably plenty of life in the Wii yet. So I think for gaming in general it would be a shame for the next console generation to start before 2013 and preferrably 2014.
I think it may depend on whether any or all of the consoles start seeing a substatial drop in HW sales in 2011 or 2012. But it seems there's still plenty of selling potential left in all 3 consoles, and all 3 consoles are selling at levels that developers would see as healthy enough to continue supporting with new games that will turn a profit.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
