I think on the part of Microsoft and Sony (and possibly Nintendo) there will be a lot of emphasis placed on 'downloadable content' - whether it be entire games or overpriced horse armor/etc. - because that is what gets them the most money.

I don't think Sony will try to be as bleeding edge. In fact, if Nintendo keeps doing as well as they are now, I see the other two trying to imitate what nintendo is doing (motion sensing/pointing, not-so-bleeding-edge hardware, casual-friendly games)

Nintendo has learned that innovation is the key to winning in each market - so there will probably be something about the next console that will be akin to what the touchscreen did for the DS and the wiimote did for the Wii.

I'll probably just keep playing my computer games and possibly buy Nintendo's console (if it uses physical media for games). I've been losing interests in consoles over the years - the market is quickly approaching over-saturation point...

I didn't mean quite that, all I meant was that PS2 was successful off of it's ass, but Sony managed to not be able to ride on that and now they're in basically the same boat the Xbox was in last generation. They did a LOT os stuff right last generation, and didn't do nearly as many things right this generation. As they say, hindsight is 20/20, and you can never really tell what's going to do well before it does it. I mean, seriously, who figured that Sony would manage to go from distant first to not-quite-so-distant last? The same could happen to Nintendo or MS next generation.

Well, as more and more devs are thinkin' about this, why not imagine one console only?

Just to give you an idea: the online facilities and the easy programmation of the 360, without the RROD + the potential power of the PS3, without the huge price and the complex architecture + the innovation, reliability and price of Nintendo's hardware + all the devs on board from start to finish in every genre you may imagine + a virtual console including all the games ever created on any console = ... gamer's paradise !

I don't imagine the three companies together, too difficult... but who knows, two, it may happen... most likely a Microsoft-Nintendo partnership, or a more logical Sony-Nintendo japanese partnership... with the third one out in both options...

Or the Sony game division, bought by (a then very very rich) Nintendo? Or Nintendo, bought by (a then still very very rich) Microsoft?

Don't like the latest option, don't like it at all, but who knows?

All i know is that there's no room for three different consoles... two, maybe... but three means one or two will always have difficulties, while 3rd parties will never be sure to invest the right way in future games development... and will always have to learn how to do it the best they can, in three totally different ways...

And us gamers, will have to spend $1500+ in hardware only, just to be able to play "all" the games we could like... if we still got enough money left...

Btw, this is pure speculation, and just my two cents: i don't want to shock any of the fanboys out there, so don't flame me, right? :)

I think that in the next generation, it will be more of a joke than anything else.

Here are my predictions:

Nintendo: Inspired by the success of the Wii, Nintendo creates a system with a bajillion different peripherals, thinking that they'll be bought like crazy. Once the poor sales come in and Nintendo runs out of uses for them, they start to rely on their big franchises to save them. Only a couple peripherals find any real use. The system sells poorly, but gets an odd cult status. Nintendo decides to shift their focus to their successful handheld instead.

Microsoft: After coming in a disappointing third place due to the 360's weakness in the Japanese market, Microsoft realizes that the only way to win is to appeal to the Eastern market. They release several embarrassing ad campaigns and first party knock offs of games like Brain Training. Realizing that it's pointless, they release a handheld, dumping all these cheap attempts at Eastern appeal on it, and it sells miserably. Microsoft falls back on the American market and goes back to the ways of the 360.

Sony: Their second place position has taught them a lesson. Sony tries a Wii like approach. They release their console at the cheapest price. However, they fall back on old habits, releasing several different SKUs, with different games bundled and random accessories. Customers become confused, and Sony decides that the only way to grab a clear victory is to pay third party developers large sums of money for exclusivity. Sony becomes successful in this path, and falters their attention from their handheld.
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I don't think any of these scenarios would actually happen, but I find it funny to imagine.

I think the MS console will move closer towards being a media server, with a large harddrive and the ability to buy or rent games/videos online. For those without internet, they'll be able to still buy hard copies of games but they would install like a PC game does now.

MS
Take a look at farcry 2 on the pc. Those are the graphics we can expect from the next gen. Direct X10 is hot. As to the wii controller becoming standard, I highly doubt it. They might produce a different type in addition to the current but to be replaced is not going to happen. I also fully expect to see xbox720 also include either blue ray or hddvd. Expect multiple skus as well.

As a note alot of you seem pretty cynical about next generation. Even one guy who plans to stop gaming. Well good for you, hope you don't do even more destructive things with your time.

Nintendo makes console that leverages their creative ability.
Microsoft turns the 720 over to EA.
Sony makes bleeding edge electronic gizmo.

To predict the next gen, first the outcome of this gen have to be considered. My take on this Wii: > 100M, XBOX 360: 40-60M, PS3: 20-30M. All following is based on this outcome. Release dates: As the XBOX360 started first and dont win this generation, the MS3-console will start at the end of 2011. As PS3 runs bad the PS4 will also start at a similar date or only shortly after. Nintendo will release it 6th console at last, mid or end of the year 2012. Graphical output: At this time I think HDTV is significant enough that all three consoles will support it. Maybe one console will support more than 24million colors - if a tv-standard exists for that. Input: All consoles will have motion controls, but I doubt that everyone wants a Wiimote/Nunchuk-combo. That depends on how well this combo gets supported this gen. I like dtewi's idea of touch-screen-display on controller for different button-setups. Possibly one of the three will try something similar. But I doubt the real big suprises on the controller-front, it will be more consolidation on the possibilities of motion-control. Internet: Yes, all. Internal mass storage: This gen PS3 and XBOX360 using harddrives (one XBOX-model has none) and Wii a Solid-State-disk. With the strong progress on SSD's lately I'm sure in the nextgen all three are using SSD's. Graphic-chip: Hmm, all three are using an separate graphic-chip this gen. But 2009 AMD and Intel will release CPU's with integrated GPU's. That may be something for the future. Three possibilities: 1. A CPU/GPU-combo as this gen, with external chip for GPU. 2. An integrated GPU in the CPU. and 3. The CPU has commands for maniputlating 3D-objects (like SSE for multimedia) and it is no GPU present, only a little chip to output the video-signal. Of all three I like the third variant the most. I know NVidia hopes the most for the first variant (on the other two their services are unneeded). I would say Nintendo and MS choose variant 2 and Sony #3. CPU: MS will stick mainly with the CPU of the XBOX360. It is relatively easy to develop for (compared with PS3) and powerful. This time it is multiprocessor (3-core) PowerPC, next time they will increase the number of cores and the power of a single core, but mostly it's the same. Nintendo will also use a multicore-CPU. I doubt a single core will be powerful enough 2011/2012 and the experience to develop for mu8lticores will be present this time, as most new PC-CPU's are3 multicore. Hard to pedict Sony, I somehow doubt they will stick with the Cell, but who knows... Compatibility: The best compatibility will have the successor of the XBOX360, as Microsoft will use a slightly extended variant of their hardware. Nintendo and Sony will have decent compatibility, but both will use software emulation to fulfill it. Game media: This generation all three are using optical media. That is inevitable to maintain compatibility. So I predict that MS will stick with optical media, they will use the winner of the HD-disc-formats. Whoever that will be. Nintendo and Sony however ... they might a try at cartridges - if the prices are down enough for decent amounts of memory (25GB at least). That would be cool, think if you dont have to put the disc into the console, but simply sit in your chair and plug the cartridge into the controller. However, this visions needs some technical progress on ROMs, I'm not sure if there will be enough. If not also Sony and Nintendo will use the winner out of the HD-disc-formats. [Edit: I forgot about a third possibility. Game content could be streamed from the internet as you play. That could be an additional to other media-formats.] launch price: MS: 250-350$, Sony: 200-400$, Nintendo: 250-400$. Nobody will try again to sell a console at 600$.

Apostrovich said: Well, no offense there NJ5, but last gen the PS2 was the software king, and it didn't hand over to the PS3, there's no reason to think that whatever system MS comes out with next will inherit any of the 360's success. PS2 was about the most popular console ever made and has like 5 times the software of the other two systems around during it's reign, and look where Sony is now. Success in this generation is in no way assurance of success in the next generation.

 no offense but PS2 dev was already a pain in the ass back then with their "emotion" engine BS XB dev tool were better.... now 5 time the games yeas... with 5 time bigger shitty game ratio than any console before... man even PS3 or XB 360 top game now overcome the ratio of PS2 quality game..... (it's an over statement but not far from the truth)

 

so the statement of NJ5 prevails... PS is to the videogame market what fast food are to the restauration industry..... nobody likes to work on/in it, it's not that good but everybody buy it... now with PS3 it could have been the opposite but until now they fuck it up big time.... where nintendo has been like the family restaurant for generation... and MS consoles are the trendy fashion console now... like Ipod, not especilly the best but it looks cool to have one....

 

now for next gen.... I forsee like I said in an other post an all in one.... MS teaming with a flat screen company releasing a rollable touch screen with a some kind of multimedia box integrated in the base. with full HD capacity, voice and motion sensitiv, fully wireless/hot spot compatible... with satelite receiver, video on demand and a tone of online services, like music on demand... order your pizza from the living room etc..... video conference compatible, high capacity HDD (man dell is already selling PC with the possibility to have more than a terabite).... 7.2 compatible with midi entry to play the new version of music game "DJ revolution" where you can plug sound tables turntables and play the game to be the new DJ..... you upload your creation and evry month MS produce a CD of the best music and people can buy it or DL it for 400 MS point... ok i'm dreaming there.. but you see the picture... 

Microsoft and Sony will launch consoles that aren't too much different than the current iteration, they will offer more feature though and be priced within the range that consumers can afford.

Nintendo will release a console with graphics about the same as this generation, but with some feature that many will think will be a gimmick that won't maintain it's appeal to the mass consumer, whether it will or not; who knows?