I am on board with the sentiment that next gen is heading for serious problems. I don't think this is going to look like the previous crash, though. If the Xbone and PS4 do poorly enough, I can see Microsoft and Sony withdrawing from the console-making game by not making new systems and transitioning to platform-based services. Or maybe if it's bad enough downsizing to software-only.
In either case, I'm not sure how this benefits Nintendo. Though Nintendo itself has a stronger foundation, I don't see how they'd benefit from a drastic shrinkage/transformation of the video game market.