Magnavox. HDTV with integrated gaming console. The stuff of pure win.

I don't see Nintendo jumping in first, they never have, even when they were on top, I don't see it happening again. They probably won't bother until the momentum of the Wii drops below a certain point. They're sitting pretty.

Sony is going to do their best to make the PS3 match their 10 year lifecycle.

Microsoft is "relaunching" the Xb360, but as MS has an infinite amount of money, Im sure they got something going on in R&D.

i am pretty confident that if Microsoft release a new console in the generation that comes, it will dominate the market with more than 40 % market share...

Well, the one I beleive that will make the jump is Microsoft.

As for should, Sony. They need to step out of the PS3, lick their wounds and try to come back.

Smashchu2
Why should Sony lick their wounds? How many 360's had MS sold with in the same time frame as the PS3 at the moment? 11,315,798. And the PS3? 15,218,395. So the PS3 is selling quicker and yet you maintain that they should be licking wounds and admitting defeat. The sooner MS release new hardware the louder they are conceding second place to Sony.

Just to clarify then SONY 10 year lifecycle does not mean they will not relase a new console for ten years it just means the PS3 will be avalilble for 10 years.  The PS2 launched in late 1999 and the PS3 late 2006 7 years not 10.  But they PS2 is still avaible especially after the chopped backward compatability out of the ps3

I think Microsoft has given quite a few hints that they are at work on their new console. The report about its graphics processor that we saw here yesterday. Their statement that their not planning to finish first this gen, even the report that was issued yesterday that said they still plan to release new exclusives for the 360 can also be seen as an indication of that because if they didn't have a new console in the works why would still planning on releasing new 360 exclusives be something that they would make a comment about?

I believe very strongly that we will hear something concrete about the next xbox at the Gamer's Development Conference next spring and the announcement of a planned release date in the fall of 2010 perhaps being made at the next E3.

I see the announcement in 2010 and release 2011.

  The PS3 has been nothing but an embarassment to Sony. The creator was forced to step down shortly after its launch. Six-Axis, Dualshock 3, PS-EYE, their new motion controller and backwards Compatibility have all been embarasments for the console. It's lost them more money than the PS2 and PS1 ever made in profits. They've lost numerous exclusives (Devil May Cry, Final Fantasy, Monster Hunter, Grand Theft Auto, Silent Hill, and so forth, so forth and so forth). They're the only company who has not gained ground in the market this generation, in fact this is the single greatest fall we've ever seen for a company from one generation to the next.

If the PS3 isn't a failure then I'm not sure I like the new definition of success.

Nintendo with an HD console

Then MS will announce a new console and Sony will rush its console to launch within a couple weeks of the new MS box

Not quickly enough for the Wii to need a successor anytime soon. Nor will it: not enough people are buying the HD marketing hype that a marginally sharper screen makes any meaningful difference to games.