The PS3 & 360 will remain viable business platforms - they will NOT vanish and become irrelevant.
Remember that the model differs for different sections of the industry - Sony & MS (in theory) should make a lot of money from software on their platforms (pity about the hardware losses though).
...
I have no doubt though, that the Wii *will* dominate - and has a real chance of becoming the most popular console ever. Even though the PS3/360 will suffer in terms of market share - just like the PSP - the actual sales figures will be respectable, and in the long term - the Wii will actually *help* them out by expanding the overall market.
Next year is when you'll see 3rd-party titles on the Wii come into their own. The early adopters of the Wii are primarily "Ninty fans" - who are more brand loyal to Ninty software. Now that sales are spreading into the "general public", as long as perceived quality is there - 3rd party sales should start to skyrocket.
Be real interesting to see how Madden (+ other games) sell this year on the Wii + other platforms.
Gesta Non Verba
Nocturnal is helping companies get cheaper game ratings in Australia:
Wii code: 2263 4706 2910 1099