I think perhaps that blue ocean into which Wii tapped might have shrunk to the size of a lake. So much of the Wii install base might have moved to tablets and mobiles for games. I don't think gamers who have bought at least 2 generations of consoles are going to move to touch screens to a large degree. So gen 8 doesn't have the sales potential of gen 7 perhaps, but I think it has the sales potential of gen 6.
Things the consoles need are always on, and fast game boot up. People will decide to pick up their tablet and game even when sitting in front of the TV simply because they can go from blank screen into the game very quickly. But with consoles they will take a minute or more to go from blank TV screen to gaming.
Consoles as media hubs is one thing Sony and MS see as keeping their devices relevant. And I think Sony should make an iOS and Android app that makes smartphones and tablets able to interact with PS4. MS is trying to embrace tablets with smartglass, Sony needs to do the same but not try to corale people into its own tablet and phone hardware, other than preinstalling the PS app on its phones and tabs.
Consoles going down substantially isn't good for gaming given the types of games you can't play on tabs and mobiles. But it might be good for the gaming business: cheaper to develop, larger market, more monetisation options, but games will be the lesser for it.
“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell
"When the power of love overcomes the love of power, the world will know peace."
Jimi Hendrix
