“The industry is fundamentally driven by technology. I think dedicated games devices i.e. consoles (and handhelds) will die [out] in the next 5 to 10 years. The business model is very risky and the costs associated with creating new hardware are incredibly high.” – Ex Microsoft of Europe employee, Sandy Duncan

This is an interesting thought. With Sony an Microsoft losing 50 to 100 dollars a system, I can see the reasoning behind this. The thing with any hardware provider, ie cell phones, i-pods and so on, companies make most of there money off of services and software, then on the hardware its self.