There has been a lot of rumors circulating about one of the big three console companies dropping out of the console race next generation. Nintendo has already announced that it will be making the Wii U, and MS has been slowly leaking information about their next console. This leaves sony as the one who is, at this point, most likely to pull out. I could personally see this happening because, as far as lifetime sales go,
Sony is in third.
This leaves just Nintendo and Microsoft in the race. Concerning that we all known Nintendo is in a secluded little league of their own, that leaves Microsoft to handle the hardcore video game market next generation.
So...How bad do you think that could turn out? I've heard this sort of thing referred to as the "one console future" before. You may ask, how could this possibly be bad? Its easy, with just Microsoft holding onto the hardcore market, they can begin to charge whatever they want for their products. In this situation, their is no major alternative for console gamers but to pay whatever price Microsoft sets. Essentially, without competition, Microsoft would be able to do whatever they want.
I would like to think that MS wouldn't do something bad with its power once it had the monopoly, but history would tell me otherwise.