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Quite possible, but more likely is that PS will become a streaming brand so that all manner of tablets, TV´s and set-top boxes can be used to play games.

MS will never leave the gaming business since they have been in it since long before Sony started. They will, however, probably evolve towards the streaming and touchscreen environment and put all their focus there. This might very well include Sony devices.

Nintendo will probably still release consoles in the traditional sense and will keep a chunk of that market for themselves.

This may sound pessimistic but I think it will actually save the gaming industry. Less focus on individual consoles, more on games being available through a number of mediums.