why is an "all in one entertainment system" not desired when it comes to gaming consoles?

[Intrinsic]

Don't fall for the PR and don't underestimate the market.

An all in one box is extremely valued, everyone would want something that can do everything. Problem has always been though, that everyone that talks up the "All In One" BS is usually just saying that as a justification for an unreasonable price point or some other shortcoming. Its the price or those shortcomings that chases people away.

The PS3 was an "all in one" that for the most part was due to it being the cheapest blu-ray player you could buy at the time. Still din't mean it didn't cost $600. The XB1 "is" an all in one primarily cause its a glorified remote control. That doesn't justify it costing more than something that is deemed to be better all round hardware.

In truth, none of these consoles that claim to be all in ones are really all in ones. Especially when in truth a 1GB android phone can "do more" than any of the home consoles on the market. Yes the home consoles play games better and stuff, but as far as productivity goes, you can do way more with a budget smartphone than you can with any home console. And people aren't stupid.

The day my console has a super fast well designed browser that I can use for any site without issues, my controller has a screen that can pass for a soft keyboard, I can download torrent apps and ultimately torrents on my console, I can download and play youtube videos, have a media player that can play anything, can install and use open office on my console....etc; then we can call it an all in one.

Most importantly though, no one has actually made an all in one. The closest thing to that monicker is a steambox or a HTPC. Sony/MS basically make game consoles and then call them all in ones cause they can do a few other things outside gaming. If they really made an all in one, that was designed to last at least 5 years, then that console would cost well over $1000. Steamboxes or HTPCs can get away with this cause they are at least upgradeable.