The PC companies will fail to infiltrate the console space because they never understood from the start that a simplified process reaches the largest market of people. There is nothing new that they are bringing. Too little too late. The console market= big bucks.

Not really a oversaturation of gaming hardware, that is not true. There are not this much different models as in gen 2. There were 9 main home console systems and additionally in other regions more like Nintendos Color TV game.

http://en.wikipedia.org/wiki/History_of_video_game_consoles_(second_generation)

In no way it is comparable in the hardware area. Software is something different. Never before were so much games produced and so much studios competed for the consumer.

So I would say no oversaturation of hardware, but maybe an oversaturation of games.

What oversaturation?

No, but it is becoming more and more interesting.

Gaming future has never been brighter.