I posted this on FB: thought I'd repost it here...
think that we're coming to the last couple of hardware-based console generation cycles. Cloud computing services like OnLive are doing very well, and I think that eventually we will all be gaming on the cloud. It will save us all a HELL of a lot of money, especially PC gamers like myself, since we won't have to keep retooling our machines.
The nature of the console market will also change as consoles become cloud based. Console publishers (like Nintendo or Microsoft) will have servers for their games, while third-party publishers (like Take-Two or Valve) will have their own servers. All that will be required from us is a decent internet connection.
This will, however, cause the retail games market to kick the bucket. With everyone gaming on the cloud, there is no longer any need for retail game sales; all transactions will take place online. This means the publisher doesn't have to print discs, and thus no retailer is neccesary. All the profit can go to developers. Hopefully these bigger budgets mean better games. They should pay their designers more too, poor lads.
Of course, my predictions could be completely wrong. But of one thing I'm sure: Storms-a comin'. Brace yourselves.