While you make some good points, you also have to keep in mind that people still want good home experiences. Whether that be through gaming or movies. The advantage consoles have is that they can offer it all at a much higher than tablets. Tablets are used for on the go stuff, but consoles are used right in your house. Sony and MS might have to think more strategically in their pricing, but ultimately they have an advantage that tablets won't be able to match anytime soon. It's why games like Halo and Call of Duty still release to record profits, why internet connections are revolutionizing what a home console can be, and why the industry can still make tons of cash. For nintendo, the Wii U isn't the first time a console hasn't outsold it's predecessor. Wii did outstanding numbers and that's a hard act to follow. Just like the Gamecube didn't do so hot, but long term, Nintendo will still have the advantage of selling games at a premium price, plus the rise of digital gaming on consoles has shown they help add to a companies profits. Minecraft has been profitable everywhere it's been, and that's including Xbox Live Arcade. As long as tablets offer an inferior home experience, consoles will have a wide and profitable market. We may see some changes to how console business is done, but over all, it'll be there. Much longer than armchair analysts will probably trick themselves into believing.
