There is no doubt in my mind that the PS5 will be a physical box where games are played locally. Hell, I wouldn't be surprised if it still ended up using optical discs, given that year 1 PS4/Xone titles are already taking up 40GB. Imagine how much bigger stuff on a console 5-6 years from now will be.
What I'm more interested in is what will be the main selling point for these new consoles. They already started hitting a graphical plateau by the end of last gen--Halo 4 and TLOU look amazing on the new consoles, and I'm sure the Uncharted games and GoW3/Ascension would hold up really well too. As great as UC4 looks, meanwhile, it's hardly the massive leap between GoW2 and GoW3.
They're going to need a different hook this time, I think. But what could it be? VR + motion controls? It's hard to say, given how the Rift is still a PC-only prototype and we have no idea how well Morpheus will turn out. The direction the industry goes this gen is going to be very interesting to watch.
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