The game console is dead. What will replace it?

Wired‘s Chris Kohler:

The dual message couldn’t more clear: Consoles are bigger than ever, and they need to change immediately, or die.

“Consoles, in terms of the way that they’ve been operating and failing to evolve, have to change,” says Mark Kern, head of the game developer Red 5 Studios. “The console model is hamstrung by the whole box-model mentality, the idea that you pay $60 for a game and you go play.”

Regardless of the outcome, holiday 2013 is going to be a fascinating time. With Microsoft and Sony very likely unveiling their next generation hardware, how will they sell in the face of heavy mobile competition? Will the distribution model be radically different?