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People can only play the same game so many times before they get bored, and disruption of the market on a regular basis is needed to keep the industry fresh ... This disruption can be brought in small parts mid-generation by ad-on devices, but to disrupt the industry on the whole you need new hardware with new functionality packaged in by default that wasn't previously available.

People fixate on processing power and graphical improvements but they aren't the only things that can be done ...