I realize that MS claims that the 360 is a "ten year" console, but that's an awfully long time in the hardware business to go without any upgrades to graphics, processor, memory, etc. Frankly, I don't believe them. Of course, if they offer upgrades of that type then the question is moot. It'll no longer be a 360, no matter what MS says.
Yeah, thats bunkem. I'm sure most observers agree that 5 years, give or take, is typical, and there is not bloody way the 360/PS3 generation has all that much time left in them. I mean, thats just how these things go.
No console has ever had success with in-generation upgrades either (look at all the times Sega tried that and failed, even the minor upgrade of the RAM cart for the N64 was a stop-gap before the GC and only worked with a few games).
My gut feeling: new console generation announced in 2011 (by or at E3), released in 2012-2013 range. No facts, just intuition.
If true, would this situation impact TESV? Impossible to imagine at this point.
and Why Change?
First next gen console has a head start. The next gen is always inevitable. The only risk is teeing off too early (burn fans, miss a tech wave the rival catches).
Everything is in the timing. You want to be first out of the gate into the next generation, without being too early.
Ignore the Wii, look at the next gen consoles - 360 dropped first, hit the ground running, has out-performed the PS3 in N.America since release on the whole, even with the failure rate. Being first pays, and you better believe both Sony and MS are staring each other down at the begining of a new knife fight right now. Do you think Sony is happy with its market position in the West - they ruled the PS2 generation, but they have had to settle for what they can get this time around.
The future will be interesting.