A new console generation means new excitement, everybody in the gaming industry (and most importantly the gamers) is full of enthusiasm. This alone has great selling power even if the new console is just more of the same just in better (graphics).
Does anybody remind the dry presentation of the PS4 Pro? Nobody in the audience cheered and the same lack of excitement was followed on YouTube. And what about Xbox One X? Phil Spencer tried everything to make it BIG, nobody could overhear "the witness of the most powerful console ever“ but the reaction of the gamers was only lukewarm.
Should consoles vanish in the future and be replaced by streaming services you will see how lots of enthusiasm and excitement will be gone forever! You will never ever see next generation games anymore as the technical upgrades will be gradual and minimal and you will only notice them if you compare an current game (in the future) with a 10 or more year old game. I dearly hope we will never have such a future! The gaming industry needs real generations!
Regarding Nintendo Switch, if they can do a handheld only version, they can also do a TV only version (and hopefully they will do so). The demand for it is there. surveys showed that about half of Switch owners play it as handheld and the other half as home console (can't remember if the surveys also shows how many use it as both regularly).
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