This makes me wonder-- if Microsoft and Nintendo didn't push to have the next generation come as soon as it did, Sony could have just kept the status quo and continued selling the PS-Double and would have raked in millions. The developers would be happy, they would make more money, and the people would have cheap systems.
But in the world of competition, the next generation will try to up the ante by releasing new systems. the next generation is great, but I wouldn't mind sticking to the current one for a couple more years.
Hus, explain games like Guitar Hero and DDR to me. They are insanely popular, yet not graphics intensive.