I keep reading comments saying that the PS4 and XB1 will be the last traditional consoles and that the future will just be streaming services similar to Netflix. I don't agree with this for many reasons, but the one that stands out the most is how well the PS4 and XB1 are currently selling. The demand is still very high for traditional consoles and I just don't see that changing in the next 5 yrs or so. Sony will continue to offer the PSNow service, but I don't even think their intention was for that service to replace traditional consoles.
Also, I don't believe physical formats will truly go away either. Disc-Based media will go away, but flash memory could be an alternative and by the time the PS5/XB2 come out flash memory will be extremely cheap per gigabyte. Right now you can purchase 64GB SD cards for $20 and that is consumer level prices, so imagine how cheap it will be by 2018 in bulk form.
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