Neither Sony or Microsoft intend to launch a new home console until 2014, so say sources close to the two platform holders.
Separate insiders told Kotaku that the pair are planning to stand by their PlayStation 3 and Xbox 360 systems for some time yet.
"Both MS and Sony are telegraphing to each other that they're delaying, to milk the current [generation] and fill in previous craters better," said one anonymous leak.
Other sources confirmed the projected launch window, but added that either party could be pressured by the anticipated arrival of a new Nintendo console next year into rushing a new product to market earlier than planned.
One source added that any new Xbox in 2013 would likely only be a Kinect-upgraded 360, rather than the full next-gen offering expected in 2014.
The same source claimed that Microsoft hasn't even decided what parts will be in its next machine. Apparently, the top brass is currently wrestling with whether to follow Nintendo's traditional hardware strategy and "be profitable on day one." It's thought that both the PlayStation 3 and Xbox 360 were sold at a loss when they first hit the shelves.
"I think we'll see a game of chicken between Sony and Microsoft," commented M2 Research analyst Billy Pidgeon. "Sony definitely isn't launching a successor before 2014 and could stand to benefit by having Microsoft launch first as PS3 builds in to North America and builds a strong position in Europe.
"Microsoft claims there's a lot more room in Xbox 360 for developers to max out, but here PS3 could have a strong advantage."
"I don't think either Sony or Microsoft are interested in a new console till they can advance the technology, and they certainly don't want to launch at a $600 price point," added Wedbush Morgan's Michael Pachter.
"It may take till 2014 to get 2TB hard drives, uber fast CPUs and state-of-the art graphics and sell at $400."
Recent reports have claimed that Nintendo is planning to show off its follow-up to the Wii at E3 in June, with a launch planned for late 2012.
Insider sources have claimed that it will be "significantly more powerful than the PlayStation 3" and that Nintendo intends to "recapture the hardcore market."