I think Nintendo might be allright if it continues innovating through hardware of it's own(motion sensing, ect.). But Sony and Microsoft will have to adopt something similar in the future to survive, as they compete in the graphics and online market, where this new method eliminates the old ways of doing things. However, I still think it'll take at least a few years before this becomes really big to shape the industry, as there are many areas that will bottleneck it yet. Either way, this is power to the developer, and if piracy is killed, and publishers are eliminated, then it's a new golden age of sorts for us independents to do really well.