I think Sony are playing the long game. A much longer game than MS. I figure Sony expect MS to play a third hand.
The painful and expensive shift to CELL will come into it's own in 8 years time.
I expect Sony to scale up the Playstation 4. It won't be a new console at all, just a PS3 with more CELLS. They should reap major economies of scale, die shrink, and all those other things about Chip manufacturing which goes over my head.
People with a PS3 will be able to upgrade the console to a PS4 by buying an add-on.
Blu-Ray will still be the format of choice. Without a major shift in display devices there is no need to go to a new format.
The adoption of 360 and PS3 will be slower than with the present generation. We are reaching the point of diminishing returns for the mass market consumer. You need a HDTV to enjoy these new consoles, that will make the adoption rate much slower.
On a SD TV the difference between the current gen and next gen is not great enough.
The PS2 still has to hit the $99 price point.
Once the Hardcore have all bought their next-gen consoles, sales will be very hard to come buy.
For me the next-gen is like High End PC gaming, DVD-Audio and Laser Discs - a niche market for commited enthusiasts.
Mr Massmarket will stick with his current console for 3 - 4 years.
The situation in Europe is even more conservative, going from 575i PAL to 720p is not the same leap as crappy 480i NTSC. HDTV will struggle to take hold in Europe for a long time. House sizes are much smaller and screen sizes above 32" are rare. HD TV really shines at sizes above 32".
In Japan we have the opposite situation. The next gen is needed more than ever to grow the market. But it is there that the Nintendo Revolution will probably have the greatest disruption effect. The Japanese culture prizes innovation over raw power. Both MS and Sony could find themselves on the receiving end of this paradigm shift.
Very happy to be proved wrong about my assumptions about the adoption of new technology. It will be interesting to look back in 2 years time and see if MS have shifted a significant number of 360s worldwide.