Considering there have been rumours about the next XBOX, I think it will remain in the industry for some time. Hopefully they learn from their mistakes and take the time to release a reliable system.
No matter what people wish to say about Sony, the PS3 is a beast. I have used by launch 60g for 12 hours a day (on average) since release. It is my PSone, PS2, PS3, DVD player, and Blu-Ray player. It has had a workout and it has only recently had a few hiccups (stupid 3.01…).