An interesting discussion. I don't think any of these companies will exit this market. The market and increasing customer base of "gamers" doesn't really show any signs of slowing down. Some interesting things that I observed or thought were worth repeating
Sony has big problems in almost everything that ISN'T Playstation (I voted for them)
Nintendo is lean but is working to diversify. How long will their cash last?
The rumblings to spin off Xbox from the rest of MS have become somewhat silent
The characterization that Xbox is for FPS games is weird. I play almost everything BUT those games. I guess this comes from the launch of the original Xbox where they brought FPS games to consoles. That was more of a stroke of luck than anything. The real energy around that machine was invigorated by the idea that they could bring Direct X technology to a console - and it f'ing worked. Not only that, but Microsoft also brought us Xbox live which (like it or not) has completely changed gaming. And not just multiplayer gaming. The Xbox marketplace was a big innovation. To say that gaming would be better off without them is like saying it would have been better if the Americans never entered the space race. MS is the reason that PC gaming came back. Because they built their console technology around Windows allows games to be easily ported to the PC. At this point can you even tell which one is the port?
All that being said, the fact that consumers are still willing to buy an Xbox product after RROD is a mystery.
The old argument that people will ditch consoles and only use PCs is so repetitive, I kinda think those using it must be playing with us. Consoles are much cheaper than almost ANY PC worthy of playing big titles. Plus it is a retail purchase that you don't have to think about. Just compare the complexity of buying an XOne to buying a computer on Amazon. Consumers don't want to educate themselves which will always give consoles reason to exist.
I'd like to think that gaming controls will somehow make a resurgence on mobile devices, but I don't think there is real consumer demand for that. Instead, Apple thinks you don't even need a USB port on your computer or tablet. Why would I ever want to plug anything in when I can just touch the screen . . . ?