We're heading towards cloud gaming, I'm sure of that. The next generation will probably be the last in the traditional sense. From then on out Xbox and PlayStation will be a Platform in themselves. They'll probably release cheap micro-consoles and still sell controllers but a variety of devices will be able to connect to their services.
At least that's the way I see it going unless there are drawbacks to that business model that I haven't seen. By the time the next generation finishes internet connectivity shouldn't be a problem in the slightest.
Honestly as someone who buys a lot of there games digitally i'm ok with this. It'll be a little dissapointing not seeing new consoles release and not having shiny hardware to molest but I can deal with it.
I'm not sure about Nintendo, I don't see them moving over to becoming a cloud service as quickly.
