I'd make a console that was able to play not only PC games, but every other games for every other console ;)

I'd create a Wii U and its accompanying launch titles so that I won't have to wait for the console to release.

I am a genious.

PC gaming is the pinnacle i would make a console as close to a PC as possible meaning being able to play its library and the ability to upgrade the HW that would lead to a real 10 yr life cycle.

Cartridge based

Operating system only starts if console is started without cartridge

No HDD, but a solid-state soloution

SD card support

Built in Wi-Fi for Online

Controller is the Sega Saturn controller with two 3DS-like slide pads positioned similarly to the Wii classic controller. Optional magnetic-based motion controller for sale or coming bundled with a pro console pak or compatible games.

Processor in the 2.5-3.2 GHz range, GPU

If I had studios of my own, I'd push them to make a Turok Rage Wars styled shooter with a long campaign and online similar to Halo 3, a dinosaur-themed 2D platformer to represent the system, a Zelda-style gameplay-focused adventure game, and a 2D FF-SNES-style RPG as launch titles.

Selling old tech cheaply and betting on innovative and fun software would be the philosophy of the system.

I'd easily out sell the competition with the simple philosophy hardware is a means to run software. The system will sell at a huge loss for only $49. Of course you can't fit too much power inside for that amount of money but using patented software graphics would be unmatched. All games are downloaded.

I would want two SKUs of my console. Common among both SKUs would be the power for 1080p at 60 frames per second, good online competitive with Xbox Live, and of course I would need great 3rd party support.

I would charge for online. $49.99 annually or for $149.99 you get unlimited access for the life of the console.

My basic SKU would have no built in wifi, no backwards compatibility, a mediocre hard drive like 40-60gb, just 2 USB ports, and any other cost cutting measures like that. This would be in an effort to get as low of a price as possible. Under $300 would be a must for this basic console, but I would hope for $250.

The premium SKU would of course have built in wifi, backwards compatibility, a good hard drive like 150+gb, several USB ports, would come in multiple colours (black, white, silver, red, etc.), chrome parts, touch sensitive buttons, and anything else cool I could add. I would hope to keep it at $400 though, so all that might not be possible.

The controller would be a standard style controller, basically made up of the best of the 360 controller and the dualshock. I would completely ignore the motion control fad/trend on my console and focus on good games and good hardware instead of gimmicks.

And that's for a current gen console, that would compete with the Wii, PS3 and 360.