Good topic, Kowenicki!
My view of the situation is about what you have said. I feel the Wii will be down again (following the more traditional 5 year life cycle with sales declining now YoY). The 360, IMO, has the best shot at being UP by a good margin again next year. If Kinect keeps generating hype and word of mouth driving sales, this year could be big. Microsoft still has room to slash $100 off of consoles and still break even or profit slightly, as well as cut prices on Kinect. They have a lot of cards to play this year and I feel they have the best options over the other two.
Don't get me wrong, I think all 3 will have price cuts this year, but the 360 will have the most impact and be able to drop the most out of the 3 (While remaining profitable that is. Obviously Sony or Nintendo could slash prices deeper and take hits on hardware if they wanted).
Sony could also be UP slightly this year following good Move support and a price cut to Move and the system. The Wii I do not see anything that could stabilize it's sales, it's on the way out while the 360 and PS3 have added new options to keep their systems going.











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