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The average gamer doesn't care about graphics as much as gameplay. That's why the system with the best graphics has never won in any generation. PS2 had the weakest and yet totally murdered the more powerful GC and Xbox.

So in that respect, what has MS or Sony done with this new generation of machines to introduce new gameplay? Ummm... nothing. LittleBigPlanet may be the only notable exception. Otherwise it's all the same old stuff, been there, done that, yeah it's prettier - so what?

The Wii now only brings something new to existing games, but brings in entirely new experiences like Wii Sports/WiiFit. I don't think they'll feel any pressure to have to upgrade. However MS and Sony may if they hope to expand beyond just core gamers.