it wont ever die, it will just evolve.  i agree with david jaffe (i think it was him) that said there is one more generation of home consoles then they will evolve into some other type of pc/video game console hybrid (not sure if he said that last bit but thats my take on it).

That is one epic picture!

I think you have some competition alfredo

Console gaming is NOT defined by the means by which you get your content.  Eventually, disks could go away.  All consoles could have a version of OnLive.  People end up getting digital distribution, even if it is streamed to you.  What goes away is the disks.  Carts went away, and disks could also.  

What console gaming is, is a dedicated platform for playing games.  That is it.  The argument about it going away is that people will game on multi-use devices only, like computers or smart phones.  Is that going to come?  I don't see it personally happening.  Also, will retail go away?  I don't see that either.  Console makers need to have a distribution channel to get their platform in place.  And console makers will NOT support the "one platform will rule them all, and in the darkness bind them" bit either.  Sony and Microsoft want to control the living room, and the standards there.  Nintendo wants a piece to.  The arguments about the end of dedicated devices to play games, and replace them with multiuse devices just isn't going to hold, for multiple reasons.

As I said before Cloud Gaming will take over.

No, it isn't! The bolt is open and he is aiming at the sky >_____> 

Console gaming might die, but PC gaming wont... and smart phones wont kill handhelds, pokemon > IPhone  games.

maybe he's duck hunting

Market data shows that home consoles are not affected by the growth of the smart device gaming market. But it does show that dedicated game handhelds are taking a hit.

http://www.mobile88.com/news/read.asp?file=/2011/4/19/20110418192208&phone=iOS-Android-gaming-increase-market-share-US

Android/iOS share of US portable game software revenue up to 34% in 2010. Nintendo down to 57%. PSP down to 9% (ouch).

Dedicated handheld game consoles are on the decline (But they will always be around and have their audience). At least for this coming generation. The mass market does not want watered down home console gaming on the go. That's basically what the 3DS is (apparently N64/PS2 ports with a tacked on 3D gimmick is supposed to sell the 3DS) and Sony doesn't seem like they are learning their lesson by putting watered down portable PS3 games (ie. Uncharted series) on the NGP. The Japanese third-parties like Capcom, Square-Enix, etc. will carry the NGP just like they did the PSP. There is a base out there that is excited to play Uncharted on the go. But that game will lose a lot of money for Sony. The DS was a hit because the games were suitable for mobile gaming. To be honest, I'm looking forward to seeing the 3DS fall short of Nintendo's projections and Nintendo's revenues going down at the end of the fiscal year. The gaming industry operates with the mindset that gamers are stupid and will buy into any cheap gimmick. Perhaps a lot of gamers are stupid. I certainly feel like that sometimes. But I don't think the expanded/lapsed gamer market is as stupid as Nintendo thinks. If they were truly stupid, the shovelware would have carried the Wii through this really long quality software drought. But it's not.

As for home console gaming thriving despite the existence of PC gaming. It's simple. Console gaming is more accessible, user-friendly and convenient for the mass market. Smartphones don't have the same accessibility problems that PC gaming does.

If PC gaming has lasted this long, then console gaming can do it too xD

This seems to be the conventional wisdom, but the recent PSN debacle should make people stop and think.