[JRobertson]

In my opinion the major reasons for longer console cycles are development cycle time frames and hardware compatibility issues.

Graphics improved over the life of the last console generation until they plateaued. To do that many game developers and game engines have to get down and write code at the hardware level to optimize as much as they can. Add on the 1-5 year development time frame of many games and you're in a scenario where updating hardware regularly actually becomes a big middle finger to many of your game developers.

Things that could change this: - Newer Super Powerful hardware allows consoles can stay in the sub $500 price range and is strong enough to allow hardware level optimization to be done away with so that a 3-5 year game can work on multiple console versions (past or future). - Revolutionary game development software that some how magically lets super AAA titles be made in months instead of years while also drastically dropping the price of a new release from $60 into the phone "app" range. - Instead of hardware becoming substantially more powerful it becomes substantially cheaper and smaller. If you could buy next gen consoles for under $200 it would be a hassle, but possible to own multiple generations so that you can play your 3 year old games as well as your new ones.

TLDR: Hardware is not the reason for long console release cycles, the games are.