Nintendo released the Wii U console in September, and since then, less than 3 million people have bought it. It sold less than 57k in January, making it the worst preforming console to date.
Many consider the Wii U console already finished.
Sony announced a console that promised “more of everything” without actually showing anything that couldn’t have been shown at the PS3 announcement in 2005. Microsoft will of course follow suit, chasing the living room crowd with a machine that apparently does it all, but mostly deals with media and TV in a grab for eyeballs.
Except, the world has already moved on.
Markets always do this. They discover a niche, become as streamlined as they can to earn money in that niche, and then the niche shifts or vanishes altogether. Meanwhile, the stalwarts who occupied it, hang on to the past as a predictor of the future, and go down with the ship. They have no choice. They can’t change. Even the dwindling returns (or growing returns on a market that’s collapsing!) are too valuable not to pursue.
When a business becomes big enough, its biggest threat is its own inertia.