I've thought of a few cool things that i want to see in 8th generation gaming system (Wii, 360 and PS3 are 7th generation). It's all about virtual reality....
1........Full body motion suit. The system will pickup all movement by the wearing to the point of an erection or goosebumps. This suit would also give physical force feedback. For example if there was a martial arts game and somebody bent your arm back the suit could forcefully bend your arm back. I'm pretty sure such technology is possible in the near future.
2a........Virtual reality glasses. Instead of watching on a tv virtual reality glasses would be worn.
2b........A virtual screeen room where the player is in a dome shape room with screens all around them. Although an extremely expensive option maybe this could be done in shopping centres or internet cafe type shops. (this is probably a 10th generation thing really...)
3........Some sort of way to walk, run and jump around physically without moving from one spot. Like a 3 Dementional treadmill.
I know that this sort of thing is probably a long way off but this is my dream list. What's yours?
Note: I say system not console.