Let's reply:
1 - It's not a survival game, just having all game ports is not enough. You have to make profits, significant profits.
Because you are Sony and bleeding money or because you are MS and your shareholders got tired with 10 years without overall profit and you could use your money for more significant and profitable markets like smartphone or OS, or because you are Nintendo and that's your main source of revenue.
Price cut is an an axe cut in your profit.
2 - Console generations are long, 5 to 10 years. Rather quickly, you can tell if you will make a profit or not, and even if you manage, you have to wait for the next generation for profits. For example PS3 required tremendous investments, quick and massive cut price. 5 years or more to wait with no profit... and without any certitude you will make some in the next generation makes think.
3 - If you are losing money, not developing the next generation hardware, toolkit and game is a good way to cut costs. You develop games for the current use base, and not for first adopters (the way Sony made GT and TLOU on PS3 rather than PS4).
4 - The less you sell, the less you sell. There is no way market share just stay the same, they will shrink even more if you don't put a lot of costly effort. Currently PS4 is selling 5 times more in Europe. That means that on average 5 times more friends have a PS4, that means that a commercial cost 5 times less by user, that means that European game website will talk more about PS4 exclusives, that means that 5 more times fanboys will spend times on forums like vgchartz. And the constructor can use money from winning markets to where the other one manage to be 2nd.
5 - A superior global market share make exclusive cheaper. It's easier to buy exclusivity with 75% of market shares, it's cheaper to develop for a bigger user base. I think some company would even make an exclusive for free if they can have the hype of an exclusive, about the same market and no port cost (even very cheap).







