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I think the solution is simple.

Let this generation last until 2034. Make it a two gen generation. Sony and Microsoft desperately need to slow down the graphics race so developers can catch up on how to make modern games more cheaply without crunch. Sony and MS overextended over many years by pushing the hardware more than the software teams could reasonably handle, and now games are too expensive to make and many have abysmal profit margins.

Another solution is slow down AAA development and ramp up AA development significantly. Nintendo is really good with this. Their games are far cheaper to make on average. Sony and MS should follow their path.