If that's the case then the PS4 will be Sony's last console.

My question is this: Why are so many analysts saying we only have one gen left? Sales are going up and up every gen. It's the handheld market that hasn't been doing as hot, but even then the 3DS has some rather nice sales.

Nah.

The One will be popular enough in America and the UK to justify a new console. We already know what they have planned for the future.

Wasn't your original point that Microsoft tends to abandon projects where they can't dominate?

360 is now in net profit mode. So 360 was by all accounts a major success.

PS3 burned through all PS2 profits, and will likely break even in a few years. Yet clearly there is a PS4.

Even with the Kinect, Microsoft can't push another console of even remotely analogous design. When any developer can make decently pretty games with an open-world and still have ridiculous draw distances, there is just no way to push hardware with the "but it's more powerful" mindset. They're already having trouble with that this generation.

Really, it entirely depends on what technologies get developed in the future. There's a youtube video of a scanner actually reading a video playback from someone's brain. http://gizmodo.com/5843117/scientists-reconstruct-video-clips-from-brain-activity Granted it's terrible quality, but this is the beginnings of a completely immerse virtual reality environment (The Matrix, .hack, Sword Art Online, that kind of thing).

It's entirely possible Gen 9 will be the VR suite generation. They've still got ten years for R&D. THAT will be the last generation.

Let's be real here. The Xbox 360 has sold almost 4 times more than their first system. The PS2 had an installed base 40% bigger than the PS3. Microsoft is trying to keep growing its share. Sony is trying to get back what they've lost.

Microsoft seems to be very dissatisfied with the console market as it is, that's why they're trying so hard to go for the global audience and TV watchers in general. Xbox One is a radical step they've taken towards that goal, and it's almost divorcing the Xbox brand from the core gaming audience. I think it's very likely this will be their last "gaming console". If the Xbox One "fails" to achieve that goal (bring in the casual masses), I think they will not develop a new "high end" console and will even drop the "Xbox" name.

Pretty much yes, it still stands. Even though I found out they werent majorly profiting off of the Zune, they kept the fumes burning on the Zune as a product because they wanted to keep trying to be the thorn in Apples side. Now they are trying to Windows Mobile, which I doubt is hurting Apple unless they made some kind of deal with Samsung. I still maintain they want to dominate the competition. Microsoft got in trouble for trying to start a Monopoly and was forced to split its company up into parts in 2000 by the US Supreme Court(My teacher spoke about this case in economics). You don't have to believe me, all you have to do is see who they are focused on to understand the point. It was around that same year that they were preparing for the Xbox....and can we guess why Microsoft joined? Microsoft reached a settlement with the court, but is still being watchdogged to this day, im sure. They aren't a company you can just take your eyes off of, just like AT&T. They don't take kindly to competition that poses a threat.

Again, I already conceded that I didn't know they werent profiting. Thank goodness for the Sherman Anti-trust act in the US to protect businesses.

No.

Why they got in the gaming business is not really relevant to the question asked in this thread. The video game business is making them money right now and they won't quit unless it stops making money. Being able to dominate the competition may be the ultimate goal, what they strive for, but it doesn't mean that getting 2nd or 3rd place will make them ditch a profitable venture.