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Jumpin said:

This will be the first generation that Nintendo is first to draw the gun. Sony sales are already on the decline year over year; and both systems will see excellerated loss as the Cafe comes into existence.  Particularly if it has a price match.

If Nintendo manages to get the price right, you can be guaranteed that it will be more advanced than the PS3 and Xbox 360 in every way. On top of that, the Nintendo namebrand is the most powerful; so far this generation 235 million Nintendo systems have sold between Wii and DS - also 1.35 billion pieces of software.

Essentially, the Cafe is a death sentence for the PS3 and Xbox 360, and the longer the successor consoles wait, the more difficult it is going to be for them to succeed in the coming generation.

 

Of course, all this matters on Nintendo's price; if they pull a Sony, they could see themselves doing as poorly as the PS3 has done this generation.

Both PS3 and 360 had their strongest sales year ever in 2010.   It's too early to say how 2011 will fair, we'll know better after E3 but regardless, there's a ton of life left in both HD consoles.