I think Sony and MicroSoft are going to have to revisit pushing new technology for their next systems. These prices wouldn't be so high if the current technology in each system wasn't new and costing tons to produce. Sure they're convenient but they are driving up the prices on systems to the point where casual gamers are pushed out of the loop.
They shouldn't take the Nintendo route, either, and gimp the system to the point where it resembles the previous generation but with a bit more power. Finding a medium where Hi-Definition is being used while using affordable graphics hardware and making the sytem an attracitive price between $300-400 is where to go.
I hate video games, though, so whatever.

