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I could imagine its possible MS or Sony could go the way of video games being fully downloadable and no more consoles in the furture. Bear in mind both Sony and MS had to make a 1 to 2 billion dollar loss to get their new consoles (PS3 and XBox 360) on the market.
An earlier report I have seen on this site showed the profits that the three companies Nintendo, Sony and Microsoft have made in the period 2000 to 2008. Nintendo had a profit of around $9 billion. Sony's profit had shrunk to around $2 billion. Microsoft had a loss of around $5 billion.