Playfish chief executive Kristian Segerstrale believes that the current generation will struggle to cope with the change in gameplay styles required in the next two years.
Segerstrale believes that demand is shifting towards social games such as the ones offered by facebook and that the isolated and expensive nature of consoles prohibits them from competing in this market.
"I think that games consoles - while they might be an important part of the industry now - might become niche in the next couple of years.," he said. "It's not at all clear if it even makes sense to deliver this type of gaming on a home console."
"The challenge is, no matter how social you try to make a console not everybody has one. Not all your real world friends will have the same console as you do. No matter how social you make it you will only reach, if you like, vertically. You will only reach your friends who have an Xbox 360," Segerstrale explained.