that's a pretty big leap. like the current/previous gen, everyone's already put their eggs in a basket. i don't see sony following suit, but if it did, i doubt consumers will do more than grumble as they dip into their wallets. if sony is the only one aside nintendo not doing it, then they might reap the benefits.
it would take something truly drastic for developers to change horses now. like, bigger than the wii.
It's obviously a big leap. As well as assuming all these things happen
1)Second hand market blocked. And that's unfortunately the most reliable thing of the rumour. It's something both MS and Sony studied for quite some time and for which EA and Activision would do wonders (despite being an horrible anti-consumer practice, but oh well). No second hand market = less money to buy games for plenty of people = less games bought = severe contraction in gaming business. Saying it'd be the same as PC DD market is just ignorant, for many reasons I'll explain in another point
2)Online connection always needed. This is what I seriously can't believe it'll happen, and the biggest reason this is all a big leap. There's still lots of families / people who can't have unlimited access to Internet connection, and many others who don't have online connections. And if this is true in US, it's even more true in many other countries, especially in Europe. Even less people will buy consoles = even less games will be bought = even less money circulating
3)Sony blocks the second hand market as well. It's possible, but we can't say it's something sure yet, since despite patents, we only know that MS is probably going to do it.
4)Games prices stays the same / increase. This is strictly connected with stopping the second-hand market AND with the biggest difference between the supposed system MS (and Sony?) will implement and PC market. If prices will still be 59.99 for brand new titles, if not MORE (69.99), with no possibility of borrowing titles / selling them in order to recoup part of what spent, software sales will collapse: only FIFA / COD / Assassin's Creed & friends will sell / break even, the big majority of all the other titles will suffer much more than today, because people won't have the money to buy them. And here's the giant difference with the PC market: there are alternatives, it's not just MS / Sony on their own consoles. You can buy from Steam, GOG, indie shops and other stores, and prices are actually pretty dynamic. With amazing deals because they aren't dependant on retail sales like consoles. It's a very different environment, where there aren't second hand games, but there are lots of advantages, like dynamic prices. Instead, a console with no second hand games and prices as high as last gen, if not higher, is basically the Steam system without any of its advantages but all the disadvantages unleashed.
IF all these things happen, I can seriously see Steambox becoming THE alternative outside of "console" gaming for many people (especially "core") because it's the system done right, tested and praised, and Nintendo handhelds THE alternative inside the "console" gaming for many other people (especially "occasional gamers" and "casual") due to Nintendo & big Japanese titles (this is why I'm not counting on Nintendo home consoles as much as on handhelds, due to the home market being much more reliant on Western support) in the future. But, as said, it's a big leap just like saying all these things will happen.
I can say that the no second hand system CAN work if prices are actually reduced at launch: since there would be no reason anymore to have high prices due to the destrction of the used / borrowing world menace (duh), having 49.99 for the biggest titles is possible, and it'd decrease this policy's impact quite a bit. Even more if a flexible pricing system is finally applied (that I think it's necessary in next gen, indipendently from second hand market): games that cost more are sold for higher prices (with the highest price possible fixed), games that cost lower are sold for lower prices. This is something that needs to be done for the future, a flexibility that people is already seeing through iOS / Android and Steam/PC markets and that make the console retail market quite a bit archaic in comparison. Both hardware companies and third parties need to talk about how to make it possible. Maybe royalties / development kits prices being reduced. And it'd allow for mid-budget titles to make a convincing comeback. We even have an example of a title that started as a budget release for today's standards and became such a giant success to see its price actually increase in the following installments: Just Dance, that started pretty slow, but then...everyone knows what happened I think, no? Lower prices + decent advertising + attracting games can do wonders for many developers that don't think "It's the next COD or it's fucking nothing!" Unfortunately, looking at how, for example, EA and Activision titles are priced MUCH higher on UK PSN than at retail, I fear this won't happen.
I hope to see Internet connection needed just for activating the brand new copy of a game, that would be the correct way to implement it, and what I think it'll happen. Always required is just...stupid.