50 million Wii's sold by the end of 2008.
Sony will catch up to Microsoft if Microsoft doesn't do a legit (One where the hard drive is included with the console's low price) price drop.
The PS3 will drop in price 2-3 times this year and launch another 1-2 versions of the console. Dual Shock will eventually show up, and TV monitors will release 1900x1200.
WoW will hit 10 million (Prediction already confirmed) subscribers. The MMO market will decline dramactically this year. Most online gamers will eventually leave WoW in favor of XBL, Wii Online, and Home. I predict WoW will break past 10 million and eventually decline.
Smaller companies will grow. Larger companies without decent original IP will shrink.
Finally... The US economy will tank badly around the end of 2008, no matter who takes over as President. The solutions the politicians will offer won't help much.
Now let's see which ones come true.