Well technically if MS and Sony have an agreement not to release a console for a while. Then both of them can profit on the current consoles(which are already 6 years old).

MS might have made some profit this gen, however Sony has only made losses. I would think both of them probably have some sort of agreement not to release any new hardware for now. Since both want to get some profit before another gen.

Remember starting another gen just means restarting the losses, as thats how the console business model works. Take losses on the hardware, profit on software.

Since console gamers dont really have another option, MS and Sony may do as they please.

@below

Exactly, which is why both of them will want to extend the gen and since there really isnt another option they can easily afford to do this.

Launching a new console, means launching from a base of 0, they will need to wait until enough people have bought the new console for it to start becoming relevant.

I would think thats a huge advantage that services like Steam or even cloud gaming has over the console gaming model. There is no reseting of base at the start of every generation, the user base only goes up.

Nope.

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I don't think OUYA will be a threat to the consoles.

Why in the world would someone buy OUYA instead of one of the Big Three? No, lemme guess: because it's cheaper?

It's not gonna have ANY of the iconic exclusive franchises(Mario, Zelda, GT, God of War, Halo, Gears), it's not likely to have many of the biggest third party franchises(Call of Duty, Assassin's Creed, FIFA, Elder Scrolls), but it WILL cost less.

That's about it, though. Simply put, it's not really competing with the others.