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Machiavellian said:

Exactly what did the PS2 do better than the PS1.  It included better hardware but from there I really could not name any one feature it did better.  So yes progressing is natural but it can be one dimensional if you are the only game in town.  Here is what i like, Nintendo did not just go with more powerful hardware.  They tried to do soemthing totally different and add new experiences.  They took risk and was rewarded that gen.  Maybe its ok for you to only have one option but I rather there were more than one company defining this space.

@Bolded:  Not getting your point.  Have not all 3 console makers improved their online services.  Was this evolution or did competition make this happen??

So you are saying developer that went out of business was the result of competition between the consoles.  How exactly are you drawing this conclusion??

Spliting the market badly complicated everything, much easier and cost effective to code develop market and sale on one high market majority device then 3 different split personalities.  

Aint proof in the fact 3rd Ps dont even want to support 3 consoels right now, they cut most of it for the wiiu.