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1 gigabit internet speeds becoming common place = end of the need of physical hardware.

I think there probably will be a physical PS5 for people who absolutely need it, but it will be optional.

There will be no PS6 period (physically).

Services from Sony, MS, Nintendo, and gulp maybe even Netflix, Apple, and Google will compete against each other.

PSNow is the first baby steps to this, but that baby is eventually going to grow up. 

Nintendo will continue to make handhelds probably for a little while longer, but traditional home consoles will cease.