Want further proof? The Dreamcast's mistake of eschewing a popular emerging media was repeated with the release of the Xbox 360. Microsoft had the option of going with HD-DVD, giving that new medium a shot at success compared to Sony's inclusion of massive Blu-ray disc technology in the PS3. How does Microsoft retort? By promising an HD-DVD add-on later, which won't even play games, only movies. Just get them a cigarette and a blindfold right now.
Sometimes a company's principles get in the way of doing something better or smarter as well. When the Xbox was in development, Microsoft made it clear that it would not just be a set-top PC, even though it was made entirely of off-the-rack PC components (Pentium CPU, Nvidia GPU, standard RAM, DVD-ROM, and hard drive). They didn't want it to be a PC-port box (though it got more than its fair share of them), and for some reason wanted to "reassure" gamers that this console was all about console gaming, meaning it wouldn't be "complicated," as they apparently think we view PC gaming. In doing so, I think Microsoft missed a great opportunity do something that could have made their market share explode: Make a closed-box (no hardware upgrading/modding) console that can play PC games as well. Someone else, I forget who now, tried this idea of making a standardized PC architecture that would run a given list of games, and had a proprietary loading/installing routine where all you literally had to do was pop in the PC disc and play. As it is, PC gaming requires installation of the game, rebooting, tweaking, optimizing, and making sure it's compatible with your unique hardware. And while this is a largely automated process now, it is time consuming. The Xbox had built-in Ethernet and hard drive components, meaning that adding support to run specific PC games (i.e., getting any necessary drivers installed) wouldn't have been that taxing, but could have attracted a far greater number of people to the console, myself included. A $200 PC that hooked up to your TV? Bye bye WebTV. But they didn't.
I can remember being excited to go to the game store just a few short years ago. I looked forward to it. The very thought of checking out new releases made me giddy. The quality of software has been so watered down lately and with the prices remaining unusually high, the thought of going to the same stores simply makes me tired and bored, disappointed and even annoyed. As it is, instead of games demanding more of the player, they've begun to demand far, far less. The lowest common denominator is now the target audience simply because there are so many people in that demographic with low expectations, willing to pay to play tripe. It's about money. It's a capitalist world out there, so on one hand, I don't blame them for wanting to cover their bottom line. However, reading about the Gizmondo CEO buying million dollar cars (and then letting some mythical guy named Dietrich wreck them) while his company goes bankrupt gives the industry a black eye.