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thranx said:

I think this model is in place already, its called the pc market. Its pretty close to what you describe. You have anyone who can make hardware, and the innovations come from game makers, any controller can be used.

The PC is not like this though. You don't have the ease of use consoles present by being plug-and-play devices, and not having to worry about your hardware or software for that matter. There's a reason we have consoles in the first place. Not to mention both Mac and Linux being very handicapped in terms of gaming compared to Windows, so your example is hardly all that close to what I describe if you consider the PC to not be one platform, but three.