The reason the next gen isn't coming soon is development costs - no t the costs of the techonology. Making the same games 60fps 1080p isn't really a significant bump in graphics, and people would chosse the cheaper system. No 3rd parties will get on board if development costs increase. We're stuck with 360 and PS3 for quite awhile - I think both MS and Sony knew this to start this gen, MS opted to beat sony to the market and cheaper - Sony opted to cram in as much technology as possible.
It will be interesting if Sony really does go aggressive to the rumored $199 in an attempt to get these investors to pull out with xbox. A $199 PS3 may assure that MS will not be profiting from 360. I just don't think Sony is that stupid to put out a $600 console without knowing it would become cost effect to produce in the long run.
