It could happen, but they might be better off establishing a different niche than directly entering the domains that Nintendo, Sony, and Microsoft currently occupy.
You've got machines like the Blaze Evercade and Intellivision Amico, which are focusing on retro and/or "family friendly" games. You've also got streaming services like Google's Stadia and Amazon's Luna, which are giving you console-style gaming on a variety of devices. Any of these could become a breakout hit if they can combine all of the necessary ingredients: low price of entry, affordable and appealing games, ease of use, and good marketing and advertising.