There are a lot of people talking about how Sony might not make a PS4 because of PS3's current performance or that Microsoft might bow out if 360 doesn't get them to profitability. What I would like to discuss is what exactly it would take for a company to quit the console business.

Personally I think that even if Sony never sold another PS3 they would still make a PS4. As for Microsoft, I think they will make another Xbox regardless of whether or not they get into the black this gen. For Nintendo, it's a no brainer.

So exactly what would need to happen for any of these companies to leave the console business:

Sony:

Should the PS3 not break the Gamecube numbers, like some people have mentioned, then I think the PS4 would have to sell less than 10 million consoles before Sony would consider leaving. Even then, they might just shift all focus to their portable division.

Nintendo:

Personally I believed that the "Revolution" was Nintendos last chance. I thought that if Wii didn't work and only sold GameCube numbers than Nintendo would stick to handhelds, however the Wii is a smash and it will take some kind of miracle for Nintendo to back out now. The amount of money Nintendo has means they can afford at least 2 unsuccessful generations without too much worry. It would mean consoles flopping harder than N64 and GC before they get worried.

Microsoft:

With reports that Halo 3 might push them into the black it's looking like Microsoft might not be going anywhere for awhile. However if the 360 cannot sell more units then the original xbox, and "720" ends up under 20 mill or gets off to a very slow start then I see M$ calling it quits and shifting focus to the PC.

Basically it looks like we will have at least one more gen after this one without anyone dropping out of the war. Personally I think that all of the big three have at least 2 more consoles before any of them are in serious trouble.

It took two 10 million consoles before Sega bowed out and they didn't have the cash reserves that any of these companies have and the market has grown incredibly since the dreamcast died. I see these three duking it out for many many years to come.

What do you guys think, all fanboyism aside, what needs to happen before a company leaves the console wars?

Its cause of money problems. Atari left the console business because they were losing so much money. Sega left because there Dreamcast didnt sell and they didnt have enough money to stay in.

Nintendo: They wont stop making consoles because they found there sweet spot. They make new consoles that no one has ever seen before like touch screen or motion sensitive and sell it for a profit. They could do that for the rest of the consoles that they make and if it only sold 15 million they would still make a fortune.

Sony: They are set like Nintendo. They are one of the richest companies in the world so there is no way they will have any money problems. Not even if we go through another Depression. They are making money off the PS2, PSP, and just stopped making money of the PS1. I wouldnt be surprised if they started making money again this holiday season because of the PSP and PS2. Even though they are losing money on the PS3 at the moment it will help them out in the long run. Help them with Blu-ray, gaming, and buying TV's for the console.

Microsoft: This is the company that might go out of the business. If Halo 3 doesnt let Microsoft get a profit then what? This is the only company that has not made a profit. They have lost billions. If Halo 3, Halo 4, or Gears of War 2 doesnt make them a profit then they might just call it quits. From what im hearing (not sure if its true) Halo 3 didnt give Microsoft any profit. They still lost money for the week of its release.

If the 360 doesnt end up selling more than 30 million than micro$0fr will leave.

If the ps3 doesnt manage to sell 20 million then Sony will leave(I expect 100 million)

If the wii doesnt sell 30 million then nintendo will leave(I expect 50 million)

 And then every PS is pretty much screwed.

Even if one of the current companies were to leave the console business, there will probably be new ones who will give it a shot. 

Microsft should Spin off the Xbox brand

i haven't heard anything about whether or not microsoft is in the black now or not but i think they definitely will be sometime next year and they can only get better from there, i don't see them going anywhere

PS4 will definitely happen, regardless of how bad PS3 does. The playstation brand is worth too much and they made too much money on 1 and 2.

 In the black for a single quearter, notoverall. Isn'y Microsft currently6 billion in the red in their Xbox division? I know they lost 4 billion with the original Xbox at least...

Yah but if it weren't for their 1.2 billion RROD screw up, they would be make back that money right now. This fall and next year they will make up a lot of what they lost. They will probably be close to over all profit before they release a new system.