There are some seriously overlooked issues here.
#1 - new consoles are sold at a loss at launch, and are "buoyed" by licensing of games.
#2 - the hottest gaming platform on the planet sells most of its games for Free, $0.99, or $2.99.
#3 - the first company to blink (see: 360) will be trumped for the 5 years afterwards in specs (see: PS3)
#4 - mobile platforms have games that are much more popular per title. Angry Birds, anyone?
#5 - mobile platforms are mobile, and have much *less* hardware
These ideas combine to be a big problem. All platforms have introduced alternative controls. Xbox will never get Blu-Ray, Sony will never get a paid network as big as Live. Nintendo has success without expensive hardware. This means that no one has a big incentive to jump out and say "we can do 1080p more than before". I have a hard time believing the $60/disc model is going to continue, especially when EA aren't giving full content to resold games. Why pay $60 for most of that shit? There are about 5 games a year I'd even consider paying that much for, and I sure don't have the time and capacity to go through a large campaign plus master multiplayer pr0n. I want a game I am satisfied playing in 60 minutes. And you only pay $1/minute if you're getting a Happy Ending.