This generation is truly proving Iwata's/Nintendo's prophecy they had over 20 years ago regarding the industry reaching a dead end.
Iwata stated that graphics & gameplay even back in the 6th gen have peaked for the most part and improvements would become slower to be as appealing and soon the costs & time of developing these games would be too costly for it to be sustainable for a limited amount of demand, which is the main reason why Nintendo went the direction of focusing on creating relatively cheap hardware & software that is still just as fun to play as more expensive pieces of software & hardware, it's called the "Lateral thinking with seasoned technology" philosiphy that has made Nintendo the most profitable video game company out there right now.
It's a major problem right now for a platform that's going to sell 100M+ units with high software sales to still struggle this much with profit margins to the point where they have to become multiplatform. Xbox is doing a similiar thing also. There definitely needs to be a major shift in game/console design in the future from these companies
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