I think the next 3 years are going to be great for console users and developers because the consoles are older and the hardware is aging. It means most devs have caught up with the latest hardware and their games have a good chance to sell well with large install bases. I want this generation to last another 5 years without Sony or MS releasing new hardware.
Actually it's not that simple,you should read this article.
http://www.eurogamer.net/articles/2010-10-23-hard-numbers-article
True, that article spells doom moreso for retailers than developers as they weigh the retraction in retail sales with the boom in digital and reinforces my opinion that a new console generation would only add to the problems the industry is currently having. Devs would have to allocate more resources away from development to learn/acquire new technology, userbases split again...
Investing in and remarketing current hardware with new peripherals that change the experience and increase userbase is a much smarter decision. Ok so MS have spent half a billion engineering Kinects release, this is nothing compared to the amount they had to spend fixing up their problems with shoddy hardware this generation (3 billion+ for the Xbox out of warranty fixes for RROD right?). Those people worried about playing 'sub hd' games with only 2xAA on their console should stfu and buy PCs. Too poor? Stop complaining.