Competition is very good for consumers. If it weren't for the 360 being competitive with the PS3, the PS4 would be priced at $600 right now.
And the reason why there are so many games on all the platforms is that the platforms are almost completely identical architecture-wise, making it very easy to develop for one and release on the other.
PS2 may have had a great selection, but a lot of it was due to the disparity in console power/price. The architecture of all 3 consoles was significantly different, and the PS2 had much weaker hardware than the Xbox or GC, which led to devs not bothering with porting games for the most part to the other consoles. The PS2 was also significantly cheaper than the Xbox, and sold much more than the GC due to having a DVD player.
You're Gonna Carry That Weight.
Xbox One - PS4 - Wii U - PC
