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The consoles are fine, I don't quite understand why people keep whinging about innovative hardware when really we had to wait until Wii for console with a genuinely new control method, so that's over 30 years of consoles which managed just fine

The reason why those systems didn't have these problems was that games continued to innovate so everything was always new, but right now things are atrophying because rising dev costs leave big devs reluctant to take risks or make interesting smaller titles because they are too risk-averse and opportunity cost means they think it isn't worth it

Big cookie-cutter AAA titles are in my opinion mostly to blame and have come at the expense of other genres, compounded by the struggle of Japanese devs (which is another discussion in itself) which has further compromised variety

My hope is that indies begin to evolve and begin to make bigger retail titles but without compromising their independent spirit and drive to innovate, suring up the market beneath the CoD behemoths and restoring the variety we used to experience in previous gens