I really don't think Sony and Microsoft will change their ways too much.. I expect launch prices of around $349 for both companies, and that is with a substantial loss might I add. Their consoles will out do Crysis quite easily and come with a large hard drive and motion controls as standard, probably more advanced Natal and PS Motion type interfaces.

Nintendo's next console will be HD, but I expect a heavy emphasis on downloadable titles. They have to improve on the values such as accessability, active interface and pick-up-and-play and so I expect more precise motion technology along with a new peripheral ala the balance board however one that is even more accessable than the Wii Remote. Something simple like the Vitality Sensor - Put your finger in and you're controlling the game.

I don't think that the next generation will use significantly more processing power.
It will be about controllers.

I think, next gen, we'll start to see the move to DD and the beginning of the end of physical media. Nintendo always finds a way to innovate so I'm waiting, with baited breath, to see what they'll do next. MS's new console will probably be built around Natal. IF (and this is a big if) Sony makes another console, they'll really have to skimp and not do anything too outlandish. They can't risk another generation like this one.

I also wouldn't mind if Apple made a console. They tend to make quality, fun products that people love and can't stop buying.

This is by far the thing I hope for most. And I also believe there's a big chance 3-D tech will be big in next console gen. Especially as all three console makers have tried motion controls in this gen already, so they need something ground-breaking in next gen.

3-D gaming is going to be so immersive and awesome.