Depends on their business goals. For example, MS prioritizing subs and services would lead to cross gen being the best route as it keeps their consumer base as large as possible.
For Nintendo and Sony, who prioritize having larger install bases for their hardware, 1st party exclusives that leave the previous gen behind are a must. This gives consumers more of a reason to upgrade.
When it comes to 3rd party, it is really up to them. It makes sense for them to do cross gen for about 2 years however, to keep their potential sales as high as possible while the next gen grows. Hardware sales mean nothing to them afterall.
From a consumer standpoint, cross gen should be viewed as a good thing as it keeps late adopters from feeling like they lost their money. The only people in this camp that wpuld be against it are those who want the new hardware to be pushed as soon as possible, which thankfully is only a vocal minority.
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