Really, I should reformulate this question. Do you think Sony, MS and Nintendo and possibly even Apple (they have the finances to do it) will release new consoles in the traditional mould of the past 30 years or so (since the NES)?
For now the traditional mould works but that will eventually go the way of the dodo as well. The pc/laptop situation is the clue here. People only need a device good enough to do what they need. For ages you needed a pc because a laptop was too much of a compromise. Now though laptops have gotten strong enough to where they are good enough for many to do everything they need, so the need for a pc dissapears. Consoles are the same, right now they are required to get acceptable quality graphics in gaming so people stick with them. But one day in the future there will be a level of "acceptable graphics" reached by consoles (we may get close to that next gen) to which the benefits of going past that aren't substantial enough for people to care. Eventually tablets or some other device will be able to recreate that level of graphics, and boom consoles will no longer be needed. It's like the pc/console situation with gamers, for many the graphical difference isn't big enough on pc's so they stick with consoles. Eventually the same thing will happen to consoles and they will be replaced by some other device. It's still a ways away but it will eventually happen.
Hence why it is so brutally imporant for the big boys like MS, Sony, Apple, etc, to establish vast software/service ecosystems today that lock people in due to the content they provide. It won't be hardware that ties people to a company anymore, it will be the software and services. Apple is ahead of the game here but Microsoft will join then in a huge way next year, they are in a better position than most people realize. Sony will need to partner with a software company otherwise in the future they will be squeezed out. Nintendo I suspect in the future will no longer be a hardware company and instead will be a value add "software service" on another providers ecosystem.
dont see that really having been a problem this generation. At all, once again.
It did force some big changes on the industry, notably the rise of the uber publisher like EA, Activision and Ubisoft. Even uber publishers though can only manage so much risk, and right now the costs of development are the biggest risk. I can't imagine them going up substantially more next gen unless there is a huge influx of new core gamers.