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You got it all wrong. There is nothing wrong with the price and power of the consoles. What is wrong is how developers think all they should do is push tech. Making original or diferent games instead of FPS and open-world only could tap into many markets. Ideally, the tech not beeing cutting edge and beeing cheaper would allow for more genres to re-emerge again and be profitible. But, the focus on big tech and big profit leads the market to a dead-end where consumers aren't willing to pay more, but game makers need to sell more.

Basically, everyone should chill the hell down and focus on making fun games.