Hmmmm..... Not good indeed.
More than likely, this will be the last generation for home consoles the way we know it.
I'd like to see Sony, Microsoft and Nintendo actually get together, establish a standard and license game players to a number of different manufacturers, much the same way there are different manufacturers of DVD and Blu-Ray players. This game player would play all games regardless of studio and connect to an online service like XBL or PSN.
Pretty much what Steam is doing.