The new Xbox; 720
The currect economic climate (blegh!) is said to be the cause of the delay, originally Microsoft and Sony aimed for a 2010 release of their new consoles. Because of the timeline, the console will most probably be powered by a processor printed in a 28 nm procedure.
My prediction would be a console interconnected with internet and home computers, the pillars I mentioned ealier; network terminal, media player and gaming should be continued. But a more thorough integration of internet connectivity in both communication and social contact will be key in convincing consumers to switch to the new console.
Backward compatibility will be an issue, but as we’ve seen with the current generation of consoles, it will not stop the masses from adopting the new platform.