If PS3 had failed then it would pretty much guarantee no graphical or power improvements for next gen, just a bunch of lame gimmicky motion control stuff and casual stuff. There would probably be a significant lack of good new IP's next gen too and more quick cash-in party games and whatnot.
Honestly if the PS3/360 had failed and Wii went on to control 75% of the market like the PS2 did I think the gaming industry would be screwed next gen. Sure the Wii is a fun console and everyone from a young kid to your grandmother likes it but I think there would be a TON of pissed off gamers if all we were to get next gen is casual stuff like the Wii and Kinect/Move. I'd be done with gaming of next gen was all motion control/casual stuff.
Also on a much sadder note there would probably be no PS4 if the PS3 had failed like everyone in 2006/07 was saying it would.
P.S. that's a shot at casual gaming and Kinect/Move/Wiimote...not a shot at Nintendo.
