I think we're just going to see a split in the market, it already sorta happened this past gen, but it'll be more pronounced next gen.
PS4/720 will be a higher segment of the market for really hardcore players/people who are willing to spend a lot of money. The exclusives on these two platforms will be extremely high end graphical types of games. Things like that new Square-Enix engine and Unreal Engine 4 will be on these platforms. To reach a more casual audience I think MS may try to market the XBox 720 as more of an all-purpose set top box to counter Apple iTV though.
Wii U/360/PS3 will be another segment of the market. I think what the Wii U actually will do is prolong the 360/PS3 lifespans for another 4-5 years, and developers will make a lot of games that a multiplatform for these three systems. Also for devs that can't afford to make higher end PS4/720 games, they'll stick with these three. By the time the PS4/720 launch, the combined userbase of these three systems will probably be approaching 140-150 million.







