Sony and M$ may be able to prolong the generation with price-cuts for 2-3 more years. However, I wonder if game sales will continue to drop which will force them to release the next gen early.
The Wii can only hold out for another 1-2 years because 3rd party support has all but vanished. The Wii is just too underpowered compared to its competitiors. I think that a Wii2 could easily be significantly more powerful than the PS3-- using a custom-disc drive as opposed to blue-ray will also keep the costs down.
What should be more interesting is Apple. Apple TV is not that popular yet, but it provides a platform for Apple to introduce home-console gaming to the masses.
Most anticipated games of 2011:
Uncharted 3,Legend of Zelda: Skyward Sword, Rocksmith
Modern Warfare 3, Super Mario 3D
