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Veknoid_Outcast said:

It's kind of depressing that it's so much easier to answer this question than the other, more positive one.

Digital rights management
Microtransactions
Downloadable content
Achievements/trophies
Unfinished, buggy games rushed to market (hardly unique to this generation, but it's a problem nevertheless)
"Persistent online authentication"
Focus on online mutiplayer at the expense of local multiplayer
Loss of great and near-great studios
The influence of Hollywood on game design
Fans' blind loyalty to their company of choice and their hatred of "the other" (again, not unique to this gen, but never worse than it is now)

Thanks for saving me a lot of time