What you just described is called "overshooting" the market, and yes, probably it happened, based on the success of the only console that didn't do it.
Usually when it comes to technology, it is better to have inferior version than going too complex.
While the relevant majority of users usually don't worry that much about a bit weaker technology, they can be scared away by too much complexity, and high costs, so they might stick to the "inferior" version, and its slower upstreaming. (process of getting more advanced)








