It was a mistake in 2006 (ask Sony) and it'd be a worse mistake now. In 2006 you were only competing with other consoles and PCs. PCs were generally regarded as on their way out (and even more expensive to buy) so no prob. All it did was slow your userbase growth.
Now with tablets being major gaming devices (they are used for games more than anything else) and leaping in power yearly, and Android having several home consoles releasing this year - It is imperative to grow your user base as fast as possible. If not, they risk being matched or outstriped in power by tablets (and Android consoles) prematurely and losing sales. Don't think EA/Ubisoft/etc won't be porting all their games over to tablets/Android consoles if they have similar specs - they will. If there's money in it, they will do it and iOS/Android are FAR larger markets than any console will have. Sure tablets are expensive too but they are far, far more than gaming machines and so far Android consoles are a lot cheaper so they offer better value for the money.
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