Death rattle starts in 2013
Next gen of consoles will be underwhelming and restrictive beyond belief (laugh about that Ubisoft PC DRM now, consolites, I can pretty much guarantee you won't be laughing during the next console round - U-Play and Project Ten Dollar are test beds for some truly despicable shit headed your way soon). None of them will sell very well. PC is already in the middle of a fascinating act of seppuku, so the majority of the big boys will already be gone or on their way out the door by then.
Next up, convergence. Plugging your Zune HD3, PSP GO2, DSXXLL directly into your TV, connecting a bluetooth controller, and using that as your "console." Download-only games bought in chunklets. Total control on the part of the publisher, total restriction for you (with the exception that it'll be a lot easier for you to tote around and play at a friend's house).
Consoles as you know them will have vanished before ten years pass. PC will splinter into thousands of micro-publishers making smaller games or shifting to F2P microstransaction-supported models.