A couple of days ago I made this post as to why I think this could potentially be the last console generation; and, as the tittle says, it has nothing to do with the Wii U, X1 or PS4 sales, this is all based on the future generations and what they are currently playing, which is something I honestly have never seen anyone mentioned. I'm just gonna copy paste the post I made: 

I personally believe that mobile and facebook games have indeed been hurting both handhelds and consoles a lot. Before the mass popularity of these games, when people talk about playing video games they used to mention PS2, GC, Xbox, Wii, 360, PS3, etc..now they mention Candy Crush, Angry Birds, Clash of Clans, etc. People are starting to see that you don't need to pay $300 + a game to enjoy video games, or if you pay, is only max of $15. Now whether you consider games like Candy Crush or Angry Birds video games doesn't matter, that's the perception people have. I sometimes see the argument that "you also have to pay for the phone which is more expensive than the console" the problem is that phone gives the consumer much more value, you can make phone calls, take pictures, check your e-mail, and up top of all this, you can play video games. Marketing plays a huge role in this.

What Mario Bros. was for the kids 80s, it is now Angry Birds. You bet that the first game many kids that were born 2008 onward played was Angry Birds. I sometimes imagine how the forums will look like in 10 years and see threads asking "what was the first game you ever played?" and Angry Birds will be many people's answer. Those kids will then play other facebook and mobile games until the point where they won't need anything else, and most important, they won't have to pay for them, they will grow up with this mentality. Mobile and Facebook games are also getting bigger and "deeper", they of course don't match (and probably never will) the size of AAA games, but we will slowly start to see (as internet speeds get better) bigger games that you will only have to use a keyboard and have an internet connection. 

Now here is another thing to consider, will kids and teenagers that played mobile games will later move on to consoles as they become adults? hard to say, but I personally don't think so because even teenagers and people in the 20s are already playing these games, so why kids, that grew up playing this on top of all things, follow a different path? 

The people's gaming needs will be satisfied with the likes of Angry Birds and Candy Crush, this will be the consequence of what I mentioned in the previous paragraph. A new generation that will grow up playing these games, and just as we saw Mario getting bigger moving from 2D to 3D, kids today will see mobile and Facebook game getting bigger and better.

To add a little bit more, the fact that you don't have to pay for these games is a huge incentive to both parents and the kids and teenagers themselves. I mean parents will be happy to not waste any money in the kids gaming needs (well they have to pay for the phones, but like I already mentioned, the phone gives A LOT more value than a gaming console or handheld), and the kids themselves will be happier, why? remember when you were a kid and you spent months saving money to buy a single game? kids today won't have that problem, they will just go to the app store and download any game they find interest in, or at max, they will pay $15 or something like that.

Let's also take into consideration that in a somewhat distant future, when the internet speeds are somewhat balance across the board, developers will stop making games for console. It will be cheaper for them to make the game with single specifications and just let people stream it. Although I don't see this as a viable option for at least even a decade when the people that have a good internet speed will overshadow the ones who don't, making it the best option for developers. And this is why I personally believe Sony and MS will do, who knows maybe there won't ever be a PS5 or Xbox Two (?) and all their games will be played by streaming; Nintendo is a weird case because they live in their own little world, so who knows what they will come up with. Imagine if at some point EA decides to make a full FIFA game that can be played on a web browser? If that day ever comes, it will be the nail in the coffin for consoles in Europe and Latin America. It benefits EA as well because they won't have to pay for console royalties nor the retailers, meaning they will get every single penny the game costs (well EA is trying to do that with Origin right now, but we all know it sucks really hard).

To be clear, I don't expect the things I mentioned above to take full effect until a decade at the earliest, especially the streaming part since that requires a huge percentage of people to have good internet speeds. Or maybe, console gaming will become a niche market, the problem with this however is that big publishers will have to re-think their business strategy; if games are having a hard time making profits selling 2 million copies, in niche environment, this has to drastically change.

TL;DR version: kids are stupid and they won't buy consoles because they can play Angry Birds, they will grow up with this mentality and will play more stupid games. If consoles don't die, they will become a niche market. THE POWER of streaming video games....all this coming in the next decade. 

Yeah, unless video games on consoles find a way to evolve right now, it could be a really long generation with no real reason (financially) for console makers to make a successor.

PC is hurting consoles as well, its having a huge resurgence

The simple question is how people quantify price and value. I know a relative who bought her kid a tablet that cost more than a PS3 because "he can get all the games he wants for free on it". Games are games in this mentality and even if they are not nearly as good a one time purchase on something for years is easier to rationalize.

The main concern is if this does condition a generation to think games are worthless and spending $60 is unthinkable. If that carries into the 16-34 core demographic then I fear gaming is setting itself up for a early 80s scenario of bunch of cheap crappie games. Worse part is unlike then nothing to crash as hardly anyone buys these games anyway. Why buy Super Mario Bros. When I can get this free E.T. game?

To say the least the last few years have made my outlook far more pessimistic.

The thing is that the problem goes way deeper. As Augen and I mentioned, kids today could grow up with the mentality that paying $60 for a game is unthinkable and prefer the free game, regardless of it's size and/or quality. 

There's also the problem of the costs to buy or build a PC, however like I mentioned in my post, when/if streaming becomes a viable option for developers then costs won't be that big a problem because you could play on your crappy laptop or even on your phone.

I think you somewhat underestimate the desire of children to move on to bigger and cooler experiences. Let's say you have a boy playing on his iPhone when a Battlefield 7 video comes on the television. He will want that. Explosions, tanks, machine guns--he's going to want that. Angry Birds Zeta isn't going to replicate that.

There will be customers lost, no doubt. I think Nintendo, because their style of game is generally less complex, will see the biggest falloff, but even then their depth and quality will still brings in an audience.

If home consoles go away, it will be because of technological developments, not a lack of interest. One day people might be able to hook their phones to a tv and a controller and stream games, for example. However, I just can't see the audience for experiences like Halo, CoD, or Uncharted just disappearing.

Yeah, Nintendo is going to be the one affected the most and we are already seeing that. Older gamers know that a fps game on a PC and home  console will be better than a touch screen phone just like how older people can usually tell the difference between a good action movie and a Michael bay through the trailers. Little kids, teens, and jocks (bear with me on these stereotypes) can't really tell the difference between Pixar movies and Little Chihuahuas in Beverly Hills until the parents pay the movie ticket and they watch it.

Nostalgia and local multiplayer can only take Nintendo so far.

PS4 launched to all time record numbers.  Xbox did record numbers for the brand.  GTAV just became the best selling non bundled game ever, last gen is responcible for plenty new succesfull Ips.  Industry is coming up with new stuff not relying on old ips to get by.

yet the sky is falling lol.

Casuals and gamers, their will always be a divide. 

Maybe, but I think this is where marketing has to play the biggest role. Gaming companies that make AAA games need the show the consumers that paying $60 (maybe even more in the future) is worth it and is much better than the free or $15 game. Most humas are cheap by nature, if they can get something for free, they will gladly take it.

And as I mentioned in the OP, mobile and web games will slowly get bigger and better, technology is moving at an incredible speed, so the day when we can play a full Battlefield game on a web browser might be closer than we think. When/if that day comes, consoles will basically become obsolete (to the mass market at least).

My nephews all played their first game on an iPad. The eldest is now nine and he wants to play Call of Duty and Garden Warefare. M rated games are cool because of that M rating. You don't see that on your iPad.

Console games and mobile games are so different, it's like saying people are not reading books because they're all into magazines now. I believe this obsession with power and graphics are what's killing games. The bloated budgets are much too excessive. Metro: Last Light was a great game and it was made on a shoe string budget. Publishers and Devs have to manage their budgets and cut the fat. The Xbox One and PS4's PC like architecture should make things easier.