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Actually Nintendo has been doing that with their last two home consoles. I mean pumping money into a losing game (pun intended). The Pokemon craze actually put more then 6 billion dollars into their coffers (games, licencing and rights), with that money they can experiment, which means awesome hits and terrible misses across all their platforms. At this point emulation across the next-gen systems isn't really an enemy, unless you didn't want to release a perfect emu yourself and wanted to spend the money on fighting one like Sony did with Bleem! (after exhausting bleem!'s legal resources to fight them, they eventually bought out the company in the end).
Essentially the console market (Sony, Nintendo, and their third-party developers) is missing the big picture as in the PC/Mac is a viable console alternative to revive and make faithfull adaptions of their most coveted hits.
As a perplexed console engineer might of wondered. "What system will allow backwards compatibility (PSone, N64, SNES, Genesis you name it), which system will allow our system to forge forward with our own innovation (such as gameplay and technology), and can we get rid of the proprietary hardware that limits our mulitplayer software from being accesible to millions (This point is self explanatory to anyone reading this with internet access.)
In the end, I'm not asking for an upgradable Nintendo made PC/Mac that has this big fucking handle that I can carry to a friends house just so I can play games with them. I certainly don't want to upgrade my console with peripherals that a PC in my home already has. I really don't want to pick a fav system and stock it up with software and extras unless its got the staying power to earn my money and doesn't have a lifespan that's 4 or 5 years from when I buy it. I love my still playable (and with great library) NES, SNES, Genesis, TG16, N64 and PSone. I wouldn't change those systems and their limitations for nothing, but innovation and willingness to adopt a proven medium (the PC) with unlimited upgradabilty, killer online support and uncounted current/potential users.
That would be a wise move for the consoles. The only thing the console makers would have to address is game performance (across all configs) and piracy (I happily pay for my own copy of a quality game, as do most others) .
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