This.

Why are they talking about iOS as a threat?
Apple is getting crushed by Google,Samsung and Android in every segment.
As long as those fight with Apple Sony and Microsoft will have nothing to fear in the console market.

You know what? Years ago the mobile phones killed the portable systems like the so totally failing 3ds that not even got 1 good game before it died a painful death! This should be proof enough that consoles will fail too!!!

Mark my "sarcastic" words!!!

Like it or not, it´s true that the console market is decreasing year after year, and there´s nothing in the future pointing to its recover. People are not willing to spent money in expensive game machines anymore, and videogames will again become a niche market. All three major console makers must rethink their strategy, and developers must rethink their production costs. I don´t think Nintendo will fail soon, at the worse scenario we will see a replay of the GC/DS situation we had years ago, and Nintendo seems to be ok inside its home market.

All he is saying is that he's body is not ready for what the PS4 is about to unleash.

XBox:  So really, what will keep them afloat?  They're rich.  Simple as that.

PS4:  That's a hard one to call.  Face it, it can't go face to face with Microsoft again in that red ocean, let alone with Nintendo putting their names in the hat as well.  It wasn't like the last generation where it was a two man race.  For Sony, they have to set themselves apart completely.  COMPLETELY.  With the recent junk status of their credit and their TV division not doing too well, it has to be completely different.  It will survive, but it can't fight the same war.

Wii U:  It seems like Nintendo is finally stepping up their game.  Nintendo Directs with their leader playing a character of his own.  Merging departments, getting third partys into the mix(Bayonetta, SMT X FE, welcoming indie devs, etc.  Getting into an HD model.  Expanding their Mii into a Miiverse social network, which to me is a really good idea.  RIght now it's a little be of a mess, but it can get really big if the right game were to be incorporated.  A little late to the party, but they don't need much to survive.  

Unless Sony and Microsoft come up with a very innovative new console, it's a 3 man race in this bloody ocean of an industry.  Despite this, I do think that all 3 console makers will make it out alive this console cycle.  Why, because there's nothing taking away from console sells.  You can say phones and tablets, but right now those devices aren't sophisticated enough to take away legions of fans away from the big 3.  Also, the phone and tablet infrastructure can't compete with the dedicated gaming machine infrastructure.  Maybe if 3 of the biggest phone giants put in for a 3 year time period, maybe.  Maybe....

The traditional pricing model will eventually change due to the budding indie game scene and the need for new IPs not feasibly priced at 60$, so I'm going to echo Subie_Greg on that point.

Also, currently those doing best on the digital scene is MS. However, nobody is going to buy a 400$+ console just for the indie scene, so that will cause the nextbox peak to be a little phased later than expected.

Sony appears to be readying a content-rich launch, with a focus on AAA games early on. That can only be to their advantage. However, the market for those games is, relatively, small.

As for Nintendo, the times are no longer like the gamecube days. Nintendo has used the profits of DS/Wii to become an unstoppable game production machine, and that is something Sony and MS will never be able to beat, only Nintendo can undo themselves at this point.

My guess is that sales will not sky-rocket like in the past generations. (if sales were to be called that) The long haul is where their money should be.
Unless one of them comes with some tremendous upgrade on the system it might have a chance of selling the same or maybe more. And I certainly don't mean a mere graphical upgrade because that's just bullocks.

It's all about the expectations of the companies whether they'll fail or not. There is a market for these things, just don't go expecting your system is God given.

The article is garbage and the author is no more of an expert than anyone here. There is no reason why there can't be 3 hardware providers. If the market share is similar to this past gen, there will be as it's quite even. The only way I see one dropping out is if a new entry comes in that pushes them out, such as Apple. Sony likes its games business. Microsoft will push XBox even if it doesn't make money in order to push Windows. Nintendo IS a console company, and they need the consoles to push their massive software library. I wouldn't expect them to give up their billions. And WiiU/Nintendo and Dreamcast/Sega have absolutely nothing in common.

Anything can happen, but I would expect it to. All of the companies have sold over 70 million units. Next gen, even with a massive market or market share drop upwards of 50%, they are still pushing 40 million machines, which is a nice business.

When analys will know that console ans tablet ans smatphone dosn't have the same public console will never be dead.