Here's a video that give a better understanding from Black Nerd Comedy

http://www.youtube.com/watch?v=CJQdikin9wM

Could this be the reason why the power console never sell the most or do well in the market, and no this isn't a bash against the PS4? To be honest, I sort of had this thought in my mind for a while now.

Yes and no.

All those games back then (because he mostly talks about retro games) were special because of limitation from the hardware but also because competition and the fact that there wasn't so much money involved.

The limitations and competition forced studios to explore new ways in gameplay to both accomplish what they wanted to do but also to differentiate and highlight their game from the rest.

The fact that development wasn't so expensive back then also allowed them to take more risks. In the video he mentions Boogeyman. Does anyone really believe that a game about a superhero where its skills involve burping or to fart will get the green light nowadays? Impossible.

And let's not kid ourselves, nowadays money is the first and foremost limitation in video games, not tech.

In a way. However, that has more to do with how you accomplish something, like workarounds and more efficient methods. Freedom is a much more important component to creative expression. In the end, hardware limitations hurt the creator's vision. We've seen many developers say that they've wanted to do something in previous generations but they simply could not. Like it or not, 'power' drives gameplay forward.

Look at the SNES, where there were so many platformers and beat 'em ups that I literally got tired of gaming. Developers were running into a dead-end by the time its life-cycle closed. Variety in gaming really opened up with the generation that came after.

If you're saying that the most popular games right now aren't very creative then you're just talking about business decisions at the highest level. Mario, Uncharted, Halo, Call of Duty and Battlefield, Madden; yeah, no one is going to say that they're especially creative but it's not like they're the ONLY games out there. There are plenty of creative games at lower budget levels. We had Journey this gen, and tons of unique downloadable titles.

In the end, freedom is more conducive to creativity than limitations. Reading about how the developers of Dishonored had to cut back levels to fit on consoles, or how the designers at Sucker Punch would map out an encounter only to have the programmers say that they would have to scale it back because of hardware restrictions, that makes me excited about the coming generation.

Speaking from personal experience in writing music: absolutely! Figuring out how to solve a problem inside a set of restrictions requires creative thinking - and you'll learn something new when you do it. Whether those limitations are imposed by yourself or by somebody or something else, limitations allow you to focus on what's most important and expand what you thought was possible. Limitations are more liberating than you might think.

Yes and no.

Didn't watch video but here is my take.

1. if you have a super powerful console you can do things another couldn't, so the possibility for more creative things or at minimum the same creative things is always possible.

The problem is the hardware still hasn't been fully tapped so they just continue to just improve graphics and don't start thinking creatively. So the creativity is overlooked and not done.

2. Meanwhile a console that is already reaching its best graphics, the developers will look to other areas to distinguish themselves from prior games or other games, and thus this may lead to a more creative thinking process. They may try things they normally wouldn't.

The bad thing about this though is that as we see with the Wii U, its mainly ignored by third parties. Why they may be ignoring it? One easily would say sales, but it could be partially just because they don't want to risk creativity. Creativity is a risk, who knows if the new games, changes or whatever will succeed and thus easier to just do the same game over agian with prettier graphics. AND since their are more powerful consoles available in the market, instead of risking creativity on the Wii U, they jump ship and just make their same game with an updated engine on the ps4/one.

So personally I'm kind of dissapointed by the PS4/One launching.  I think they are going to stifle creativity again.  If there was only the PS3/360/Wii U for another 3 years I think we woudl have started seeing some very creative outings by many third party games, because they couldn't just go "OMG look at dem graphics" cause we were at the point in the generation where most games all looked amazing.

Oh absolutely. Having too much freedom can disorient and overwhelm an artist, or, in this case, game developers. I think it's much more pronounced in movies, but it's also a problem with video games.

Obviously more "power" opens up new avenues for game design, but I think far too many developers and publishers think they need the extra power, and they don't.

If you mean working with limited funds and smaller teams then yes, I'm more excited for The Witness and Rime then for the next-gen AAA games. Of course those games benefit the most from not having to worry about hardware limitations. Hardware limitations only lead to shortcuts, unless you think fxaa is part of the creative process.

Actually I don't think it's any limitations that inspire creativity. Smaller teams are key to a coherent game with soul. Having a whole team of writers and designers all wanting their bit put in leads to soulless games. It's not for nothing movie directors get so much praise. Instead of emulating movies themselves maybe games should try to emulate the creative process of movies, 1 director, max 2 maybe 3 writers.