I know that $60 games are out of the question for me at the moment. The price point looks worse to me now than it ever has, and I doubt that a sudden improvement to cash flow would change my mind on that. There's just too much goodness to be had at less than half of it.
The next gen of consoles is actually a good conversation subject in and of itself. Neither Microsoft nor Sony are in any hurry to bring it on, but Nintendo may have other plans. Because we're at such a diminishing-returns point, and because of the enormous cash cow already set up in the forms of XBL and PSN, I have this feeling that the next PS and Xbox are going to be more akin to upgrades than entirely new animals. I think it's key that there not be a complete disconnect with current functionality. I don't really know of course, and things may change drastically over the next 3 years (if it's true that the next batch of MS & Sony consoles won't come out until 2014).