It totally depends what partners MS and Sony have.
Intel had production 65nm in 2005, with 65nm production eclipsing 90nm in Q3 2006. And right around the corner at the end of 2007 Intel will have 45nm production, with high K dielectics, on the market. Intel has also been bullish on 32nm
in 2009 (the timeframe Intel has for Keifer) as well as the possibility of
"3D" (tri-gate) transistors. The roadmaps indicate 22nm in 2011 from Intel. AMD had 65nm at the end of 2006 and is is talking about production 45nm in the
middle of 2008 and they are working
with IBM for 32nm and 22nm technologies through 2011. TSMC does lag, but will be turning out 65nm in the first half of this year for GPUs; ditto Charter on 65nm in the first half of 2007.
At worse I would expect 32nm in 2011. True, as you get down to 16nm and beyond it looks like things will become much, much trickier. But with 450mm wafers coming down the pipe (for Intel) and new tricks and techniques (like tri-gate transistors, ZRAM, etc) and the full bore ahead push for multi-core architectures there is a lot of potentual in the next 5 years.
Edit: See nonamer brought up the same point I did
With Intel with production 32nm in 2009, the real point should be: If others cannot get 32nm by 2011 do you really expect MS to partner with someone else, especially with the potential power reductions Intel has planned between now and then? It makes sense that MS and others target 32nm or smaller, as 45nm is only 2 steps below what they have now. With certain areas seeing increased diminishing returns aiming for a process node where you can alleviate this some would be a better goal than making
less of a jump traditionally aimed for, only to exacerbate the situation even more. Better to wait on the technology that can achieve your vision than to just churn out a new product that offers little compelling reason to jump on. And this is one of the problems with suggestions for the 2009 and 2010 timeframe, in that it isn't only chips that have to reach this point, but with the shift to digital distribution there needs to be a storage medium that is silicon to fit into the typical console model (or at least hopes of one within the first 2 or so years so they can begin cutting prices). I saw that SanDisk was offering a 32GB Solid State HDD... for $600. With digital distribution being an option (probably not only) means to distribute content on the next consoles I am guess you will want to aim for 500GB for HD oriented material. Of course Sega fans like their console launches fast and furious.