I think it's funny what people are reading into this comment. Have a think about the market at present and what is dominating.
It's the Nintendo Wii in home consoles and this isn't winning due to graphics as we all know. Ok so where am i going with this? Well Nintendo isn't going to release a Wii HD because they know there fans arn't playing there games for the graphics, and Nintendo has said they will not release a new console until it has significant game changing improvement.
Now lets look at Xbox, they have Natal coming out and want to see how this will do before they even think about creating a new system. Same really goes for Sony, they will be watching what happens with Move and Natal.
I think they will all be watching to see the impact of 3D as well.
So we can expect atleast a few more years of the current gen if you ask me, and also don't expect the next gen consoles to be souped up ps3's and xbox 360's. The market has shown that this is not what they want.