All things considered, the three in it now will still be in it until all of our media is pumped directly to our brains by a device the size on an ipod.
Frankly, Nintendo makes way too much money doing it to quit. They'd probably still be making consoles after the release of the "mindpod" proposed above. Sony will probably be involved with making that device, and so will MS, or they'll be making competing devices, so they'll quit the console race the moment it no longer makes sense to be in it. Those two companies sell so much software now it doesn't matter if they sell at a loss. PSN and Live Arcade are very lucrative and in the near future (if it's not the case already) it'll bring in more profits than traditional sales.
They can both keep going for a good, long time because as they get more and more digital they'll keep more and more of the profits for themselves. Plus, it changes the old business model. Retail outlets expect certain things with pricing, but you can cut outside control like that out of the picture with digital distribution.
Really, no matter how bad it has look for either of them in the last could of years they are in fact both well off at the moment.
You do not have the right to never be offended.
