But the trend towards more and more power is reversing to the point where experts have begun to speculate about a future "virtual console" model reminiscent of the "thin client computer" championed by Oracle last decade. In the virtual console universe, the hardware would fade into the background to become little more than a hub while new releases of games, accessories, upgrades and other home entertainment and internet applications, would be delivered via software and firmware updates.

As compelling as this may sound for those who balk at forking out between $400 and $1000 for a new console, the concept of the entertainment hub is sharply at odds with the current reality. IBM, a co-developer of the Cell chip used in Sony's PlayStation3, says consumers currently have more computing power plugged into their televisions via their gaming consoles than they have in the PCs sitting on their desks. "Game processor power exceeded that of PC processors around the year 2000. What's more, game processing power is increasing four times every three years, compared to two times every three years in PCs," says John Cohn, a scientist at IBM.

Until now, the average life of a console has been about six years, which is about the time it takes the developers who often initially sell their hardware at a loss to realise a return on the their investment via an exclusive ecosystem of games, accessories and upgrades. Jeff Brand, an associate professor in communication and media at Bond University, says the concept of a virtual console to replace the current generation of hardware is not beyond the realms of possibility.

"Already PlayStation 3 has gone from an expensive console to a more cut down machine to compete in the market. Going beyond that to the next generation is really getting out the crystal ball but I can imagine that virtual consoles may be more common in seven years time. They may work over a media PC in the home for which you have to buy software - which is the console - and then download games". Despite the obvious benefits to console manufacturers, who are under increasing pressure to reduce their prices, this model may cost them dearly in other ways. Console revenues are sustained by a large and loyal following; Xbox 360 has its hardcore gamers, Nintendo Wii's claims the casual crowd and the PS3 has planted a foot firmly in both camps. Followers - or "fanboys" of each of the different platforms anticipate the release of popular games and peripherals with tremendous fervour.

Mr Brand warns that a shift from hardware to software could prove risky given the interest gaming devotees have for console form factor. "What happens when these consoles switch over to software. Will they [the fans] have the same love?" he asks. But as multiplayer gaming and social networking take on a more prominent role within the realm, many in the industry are starting to believe that the emphasis will shift beyond the box and into the actual games titles and networks that link them up with the outside world.

Steve Fawkner, CEO of Australian games developer, Infinite-Interactive, says the industry has reached a point where graphics are no longer the main factor in defining the quality of game content. "I've watched the number of people playing multiplayer products rise from two to three per cent of players in the early nineties up to phenomenal numbers today with games like World of Warcraft. As the latest generation of players grow up within virtual communities, I think they will expect all future games to have some form of community built in." Mike Fegan, CEO of Australian game developer, Transimission doesn't anticipate another round of major console upgrades any time in the near future.

"Both the PS3 and Xbox 360 have got the networking side of the platform that allows you to interact in the world wide web community and most upgrades can now be done through software." Sony is taking a similarly long term view for the PS3. "We think a ten year life cycle for PS3 is totally realistic," says Michael Ephraim, the managing director of Sony Australia.

"With all this firmware upgradability. . . its almost limitless." He says customers can already upgrade to the version 1.2 of Blu-ray via firmware and will soon be able to add entirely new applications designed to keep the device relevant through its online virtual community, Home. The company is repositioning the existing PS3 console as a multimedia gaming hub for the lounge room, packaging in new features like an electronic program guide called PlayTV alongside its Blu-ray player.

And for those who want to continue gaming outside of the lounge room, traditional console game titles are also being repurposed for handheld devices and mobile phones allowing real enthusiasts continue playing popular games such as World of Warcraft as they take the bus to work. "Mobile devices like the iPhone with their multi-touch capabilities, are likely to begin to make an impact sometime during this cycle now that they are coming more inline with the specifications of something that we can truly enjoy games on," says Mr Fawkner.

Mr Fegan agrees. "I think the big sleeping giant is still Nokia on the mobile front and obviously with three billion plus mobiles out there, it will be a player. It is already working on a joint venture with an Indian company that is doing the traditional console game and they are doing the mobile version so when you walk out of the door you can play a mini version of the game. The other platform to watch is the iPhone," he says. What we think of as a game today may have very little resemblance to tomorrow's landscape which experts agree is likely to be a far more immersive and three-dimensional. The future of gaming to me is a piece of hardware embedded in a TV allowing you to be part of a huge community, says Mr Fegan. "The processing power of the current platforms, high definition TVs and the storage capacity of Blu-ray will also allow developers like us to do far more immersive 3D environments for games."

According to Mr Fawkner, peripherals will also play a big part in this future. "I think the key to creating the next generation of successful consoles is more about innovating the way a player interacts with the game. New peripherals such as the Rock Band controllers, and new types of experience such as Nintendogs, are where the smart console-makers will be focusing".