Wasn't last generation supposed to be the final generation?
In all seriousness, though, I believe the console cycle to continue unabated. I fully expect a PS5 to be released or at least announced no later than 2020, and it will almost certainly use physical media, and I think MS will do the same if they remain in the console business and release another Xbox. I think the odd timing of the NX, combined with rumors of the PS4K/Neo, is causing people to get ahead of themselves and assume some massive, impending disruption to the existing console generation paradigm. People love to treat rumors as facts, to exaggerate them, and to believe in radical changes, because that's interesting and exciting while the 30-year paradigm of new generations released every 5-6 years or so is just boring and prosaic. But really, there's nothing to suggest that this is the final console generation. It's a successful business model, one that still works quite well. In the U.S., at least, the PS4 & XBO are still tracking nearly on par with the PS2 & Xbox and well ahead of the PS3 & 360. The two of them combined should sell at least 150 million units by time they're discontinued.