Japanese analysts speculate that the PlayStation 5 may be the last of its kind
Considering that the PlayStation 5 and Xbox Series X are just out and about, it is far too early to speculate what the next generation of consoles has in store for is. Some analysts from Citi Securities Japan (via Mydrivers) are under the impression that there may not be a PlayStation 6. They prophesize that cloud gaming will eventually render consoles obsolete.
Companies like Sony and Microsoft are known to sell gaming consoles at a loss, which is subsequently recovered via exclusives titles, licensing deals and game sales. That, combined with the increasing cost associated with manufacturing the hardware, may disincentivize companies from pouring money into gaming consoles. Unlike PC hardware, console releases are few and far between. The analysts think that seven-year wait between generations will not be sustainable in the future.
Cloud gaming is still in infancy, and it'll take several years before it matures. Stable internet infrastructure is essential to the success of cloud gaming, and vast swathes of the planet do not have access to it. Perhaps that could change with easy availability of 5G and high-speed broadband services.
Despite all the benefits that cloud gaming offers, physical hardware offers one critical functionality that a cloud-based solution can never pull off; the ability to play games offline. Once that shortcoming is overcome, cloud gaming could very well redefine how we play games, but that day isn't coming anytime soon.