Lawlight said:
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Because their fanbase is divided (there's overlap, but the gap between HC and HH is still big). This wouldn't be the case if they had a unified console. It's much cheaper and more profitable to just make dlc.
Assasins Creed can afford annual games because every game takes place in a different historic period and has a different story. Same goes for CoD. You can't say that of Mario Kart or SSB. What would differentiate the different versions if they're running on the same hardware?
New characters/fighters? DLC.
New stages/courses? DLC.
New modes? DLC.
I think going the DLC route would be far more profitable for them.