what a coincidence, this was posted a day after the thread I made of an Interview from another guy talking about death of consoles too:

http://www.vgchartz.com/forum/thread.php?id=21859&start=0

the only way hand helds would get replaced by smart phones is if Nintendo decided to get into the cell phone business

and as far as set top boxes dying?--tell that to the ps2 and the wii

The convergence is so far a nice dream, and little more. Though it is true that PDAs, cell phones and mp3 players are converging, there are still considerable difficulties along the way. Interestingly, the iPhone/iTouch may pave the way towards multifunctional devices that are actually as easy to use as dedicated devices, but nonetheless 5 years seems a bit of a strecth, especially considering the requirements a portable gaming device has.

As for set top boxes, I don't think they are going anywhere within the next 5 years a least. As has been pointed out, there isn't enough bandwith yet for virtualizing everything. That time may come, or it may not, but definitely not within the given time frame.

They've been shouting this tripe for years. Look at Wii and DS. It's just not happening. Cell phones in their markets have a bigger chance than PCs do in their market thanks to the iPhone, but that wasn't even marketed as a gaming device. People still see "GAMES" as something different then computers or movies or phone calls, etc. Sure integration is nice, but the common mindset is still too far off at this point, bar the extreme tech enthusiasts.

He is just saying that because 360 isn't selling as fast as the other two at the moment and the PS3 isn't selling near what the Wii is. Couple that with the fact that he probably doesn't even see the Wii as a game machine and there you go.

What I think is most funny about this, is that say that there were no issues with bandwidth, and nobody cared if they actually had a physical copy.  Does anybody really think the Wii and PS2 would have issues competing?  They may not be as successful as they could have been had there not been these alternatives, but people still enjoy good entertainment for the right price.  I see this more as, we are trying to push HD graphics and media in our consoles and nobody is buying them because they don't see the cost/value of it.  As such, consoles = fail.  It's amazing what happens when people actually analyze the market (see Wii).