Yes all will create a next new one, there is no way any of them would forfeit.

I don't think MS can overlook their horrible quality control with comfort.  The fact of the matter is, they released too early with a product that wasn't ready for prime time.  They either needed to make it more expensive (better cooling, stiffer quality control out of manufacturing) or lower their technical ambitions to fit in line with where the technology was.  Either way, the ultimate factor was they didn't spend enough time making their product market ready.  Had they not had the year head start, things could possibly look dismal by this point for them.  The growth they've seen is a combination of a lone year as the only next-gen system available without similar competition and market growth trends the video game industry has seen consistently for at least two decades now.

All three will make a new console.  The only one with any reason to stop would be Microsoft.  I think next generation they'll nail their execution though.  Hopefully they'll have more than a "me too, by Microsoft" approach to gaming.  Their greatest contribution to the mix has been their Live service, but where they fail is charging for it and perhaps that's a reason behind the lack of importance it has played.

 These are just my opinions though :)

We're all screwed if EA makes their own console and all their games are released only on it

but that wont happen :P

 I think only EA would be screwed if that happened.  I don't think they have the first party following that Nintendo does in its fans to sustain a console without much third party support.  And frankly, EA while gaining freedom by creating their own platform would lose the vast majority of the market they currently enjoy by selling across all platforms.

ok well yes all 3 will be there... I actually think if one of them decided to stop it'd be Sony.... as the can have another angle than console to attack the multimedia in your living room market (TVs stand alone etc) maybe they'll bet on the all in one....

now about everybody talking about motion sensing everywhere... you have to keep in mind that some people (like me) don't give a damn about that game play... and I actually think next gen console shouldn't use it as a standard.... maybe offer it but not forcing it to be the standard... or at least not the way it is on Wii....

don't get me wrong the Wii did it well and it works for their games... but you'd need a little bit more than what Wii is offering to make it interesting on PS 3 or XB 360.... I have 20 games or something.... and I can't imagine myself playing all of them with motion sensing...

and now on the innovation camp... I think 3D or holographic imaging cold be the next leap... because that could go great with motion sensing :)

I agree with endimion, the fact that ps3, 360, and psp are still selling shows that there is a market for "traditional" gaming, ie push button get something done instead of what Nintendo is doing in wave arm get something done. If Sony and Microsoft go that route then someone, EA or Apple, will step in to fill the void. and to the couple people saying Sony could drop out because people on the board at Sony is mad that they lost a bunch of money with the ps3, it was most likely them that forced the gaming division to push the cell and blu ray into the ps3 to help in the hd movie "war" and to help improve the cell for Sony's HDTVs.

Can't they just include a traditional controller AND motion controller. Developers can choose which controller suits best for there game. Another benefit is that motion controlled games will be multi-platform. I think it's ignorant not to include motion controls. Not including motion controls is like saying: Hey, Nintendo you can have all third party developers that make motion controlled games for yourself.

Of course next generation, there will still be lots of traditional gamers. However that's not a reason to ignore motion controls. Console manufacturers want their console to appeal to a very wide audience. That's the key to success. If I'm correct Sony advertised their PS2 as a console for 8-80 years old gamers. Look at Nintendo Wii that's also 8-80 years old audience.

Well:

1. Sony has won 2/3 generations its been in (this ones about decided) and won't give up after one loss so - Yes

2. Nintendo has been in it forever, and has won (assumption) this gen so - Yes

3. Microsoft is lagging behind, but is still improving and getting more sales than last gen so - Yes

4. I don't know what other consoles would possibly enter. My best guesses are:

- Electronic Arts - Would explain why they're buying just about every game company

- Apple - They know a thing or two about electronics. Big Brand Name too.

No, by next gen the world will have been flooded due to Global Warming (even though there is a lack of logic here, as according to my calculations, only 8% of the world's population will suffer severe damage, if every single glacier on the planet you call earth melted.)

OT:

Nintendo will obviously stay in, I cannot imagine any reason not to, other than a flood of new consoles comming.

Sony will almost certainly stay in, the loss on the Ps3 would have to increase heavily (ala a sudden RROD on Ps3s) for them to give up.

MS has used 2 generations trying to get into the market, leaving now makes no sense.

There will be a new console next gen, it will probably finish 3rd or 4th, and I refuse to guess which company, as there are several possibilities.

Yes, they will all be back.

No New console maker til the 9th generation.

Maybe Apple will use the iPod will go after the PSP market, portable media player and game system.