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Landguy said:

Based on the sales of the WiiU/PS4/XBox One, I think that all three are going to fail!

So, how does this indicate that the Next Gen is a failure?

Like anything, it's all in the eyes of the beholder.  Last Gen will have sold 270+ million. Based on my thoughts, this gen will sell 150 million at best. It's not because the products themselves are bad. It has a lot to do with things outside of console gaming. Smartphones/tablets/PC's/ the internet.  I could get into a long debate on how those things will really be the demise of console gamings dominance, but that is another thread...

I do believe that you have some good points. 

I wouldn´t say that this generation will fail financially, it will sell enough to, at least, give some profits to each company. But I do believe that no brand this generation will sell as good as the previous one.

Console gaming, unfortunately, due to several reasons, and despite all the money it moves, is failing in becoming a major entertainment branch attractive to all people, like music, books or cinema. I´m not saying that people won´t be playing games in the future, but many will definetely use different approaches to play them, like you said, tablet, smartphone or PC social gaming. Some people even don´t care about consoles anymore. The biggest challenge of the console industry now is how to bring new consumers to the market, and not only bring the so-called "casuals" back.

And we still have the problem of high production costs and the AAA paradigm, that has been slashing  the financial situation of many developers, Square Enix the biggest example, the market won´t be big enough to sustain such productions and we probably will see less new games.

The industry will have to shift some of its aims and paradigms, but financially this generation may end just fine. The generation after this is what we really should be worried about.