First, look to where the Hardware is coming from. Intel and Nvidia are starting to move into eachothers main areas. GPGPU and Intel is making Larrabee a raytracing/rasterizing GPU of unknown quality to compete with Nvidia. Intel and Nvidia are starting to move into the mobile arena as well. So expect a handheld unit at some point in the future, the chipmaker here could point to who makes the chip for the main unit.
Secondly, Microsoft will execute their strategy for a media centre in the home in the next generation. Expect things like TV recording, media downloads, Blu ray playing, high end sound output and innovative controls to help run it all. Possibly they will integrate with Older 360's and act like a media centre. This should help them get a few Wii type games and cater to the widest possible market.
Thirdly, Intel! Intel NEEDS microsoft now, if they want to compete against Nvidia's GPGPU efforts they need software written. Software that will be written possibly on a Microsoft console. If this happens, I think it could be every Xbox Fanboys christmas and Easter all at once. Think, integration, think real CPU and not a cut down Powerpc. If this happens, expect them to go all out, 4 or 8 core with 2 threads per core, 4 wide execution units, integrated northbridge to reduce cost and latency. Fast, effective process shrinks. Raytracing may finally make an appearance in a game... Its all there IF LARRABEE IS ANY GOOD. :)
P.S If Intel needs microsoft, they won't gouge them on prices like they did last time. Don't worry about that. Afterall Microsoft could get pissed and release Windows for GPU's.
As for games? Well with the right controller and gameplan they can get the whole range. Maybe even MGS5 will be cross platform? ^^ Hate the game, so I dont care but im sure some of you might.
