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curl-6 said:

Usually, in my opinion, when a platform holder gets too comfortable they get complacent and arrogant and start short-changing their customers; see Nintendo in 2012, Sony in 2006 and currently.

A little competition helps keep them honest.

This is how it plays out in practice.  Generation 6 (PS2) was not competitive, but it kind of ruined the PS3, because Sony got too cocky.  And the Wii was Nintendo's most successful home console by far up to that point, but that kind of ruined the Wii U.  The huge success of one generation can ruin the successor console.  But that really says that the console market is competitive overall, even if some generations have an extremely dominant winner.