For the first time since 1972, our current generation of home video game consoles doesn't do anything that the last generation of consoles didn't do.
Every previous generation of home video game consoles had new features that clearly distinguished new systems from the previous generation.
But with the current consoles, there's a lack of innovation. People talk about the end of console gaming, and that might be what Microsoft wants anyway - to have Windows PC be the only gaming platform. But if that happens, it will be because Sony and Nintendo failed to offer anything new or different. Nintendo seems to be the only one with something to offer that PC gaming doesn't have, and that is mainly their exclusive titles. They're good quality games, but another Mario game and another Zelda game aren't enough to keep the entire console game industry going.
Here's a look at the advances in each console generation:
First generation, 1972 - Atari Pong, Magnavox Odyssey, dozens of other Pong clones including one by Nintendo
Defining characteristics of this generation: They were all Pong
New Features: Played video games at home on the TV for the first time.
Impact: There was no previous generation, so this generation's improvements were infinite.
Second Generation, 1976 - Atari, Colecovision, Vectrex, Intellivision, Bally Astrocade, Odyssey 2
Defining characteristics: Software on swappable cartridges
New Features: Microprocessors, color graphics, multi-channel audio, artificial intelligence allowing single-player games, controllers with wires for both players instead of having to touch knobs on the console's housing
Impact: This generation changed video games from a novelty with low replay value to a passable home substitute for arcade games with the constant expectation of new releases.
Third Generation, 1983 - NES, Sega Master System, Atari 7800
Defining characteristics: Real graphics, and the D-pad/Gamepad became the standard input device after Nintendo introduced it, replacing joysticks
New Features: Scrolling, sprites, color palettes, story, dialogue, cutscenes, saving
Impact: This generation changed home video games into something more than inferior versions of arcade games, allowing for experiences that could not be had at arcades. If the 1st generation was an alpha release, and the 2nd generation was a beta release, the 3rd generation was the first complete product. Games were developed by teams instead of programmed by 1 person.
Fourth Generation, ~1988 - SNES, Sega Genesis/Mega Drive, Turbografx 16/PC-Engine, NeoGeo
Defining characteristics: Minimum 512 color palette, more buttons on the controllers led by Nintendo's 4 + 2 shoulder buttons
New Features: 3D effects, scaling, tilemapping, pre-rendered 3D graphics, CD drives
Impact: This generation began the real console wars; not just releasing a console and hoping it sold more than the competition, but actively trying to be better and making constant innovations to release the newest and best games
Fifth Generation, ~ 1994 - Playstation, Sega Saturn, Nintendo 64, Atari Jaguar, 3DO
Defining Characteristics: 3D graphics, analog joysticks only after Nintendo introduced them first
New features: Expansion ports, more than 6 buttons on controllers, 24-bit color, some networking capabilities, local multiplayer deathmatches
Impact: Now all games are either 3D or they're old primitive technology from the 80s. This is the only generation that made such a leap that the previous generation hardware is unable to run scaled-down versions of the new games (4th gen consoles can't run 3D games at all; all other generations just do the same old stuff with better graphics, but this generation did something completely new)
Sixth Generation, ~1999 - Sega Dreamcast, PS2, GameCube, Xbox
Defining Characteristics: All consoles use optical discs, all consoles are online-capable
New Features: 3D graphics that have more shape than jagged edges, analog triggers, wireless controllers after Nintendo introduced them, DVD movies, higher-definition cables optional for all consoles, hard drives, PS2 has games controlled by a camera that can put you on the screen in the game
Impact: GameStop everywhere. More players, more money, more games can be made. Developers test the limits of each console. PS2 has an MMO. Xbox has Morrowind with a world bigger than an MMO. Dreamcast has email and you can plug it into a VGA monitor with a mouse and keyboard. GameCube has 4 players fighting Pikachu vs Mario vs Donkey Kong vs Link.
Seventh Generation, 2005/2006 - Xbox 360, PS3, Wii
Defining Characteristics: Downloadable game demos, Netflix, home button/home menu, bluetooth controllers standard, wi-fi standard except for the 360, web browser standard except for the 360, motion controllers for all consoles after Nintendo introduced them
New Features: Game updates and patches, firmware updates to add new features to the console, online multiplayer for all consoles, updates downloaded in background and/or when system is in standby, online shopping, indie games available to everyone, achievements and other in-game notifications such as messages from friends without interrupting your game
Impact: This generation had as many new features as any other generation, if not more. But at the same time, the consoles got even closer to being the same as a PC. You can't trade, lend, or sell a game that you paid to download, and they want us to download everything. They started selling us downloads of games that were previously backwards-compatible on disc, and they removed the backwards-compatibility. And in another sign of these companies peddling things we don't want, all 3 consoles released "slim" versions that take up just as much room while getting rid of features. Every model of the PS3 eliminated something else - hardware, backwards compatibility, USB ports, card readers; multiple "fixed" models of the 360 still broke; and the "Wii Mini" has no SD card slot and can't even connect to the internet at all.
Eighth Generation, 2012 - Wii U, PS4, XboxOne
Defining Characteristics: They all have cameras looking at you
New Features: They can all use touch-screen tablets as controllers, after Nintendo introduced it
Impact: People are saying it will be the last generation of home consoles
Maybe I'm not being fair to the current generation, so please point out anything I omitted.
But my PS4 mainly gets used to watch movies; I'm still boycotting the Xbone after their pre-release attempts at a fascist dictatorship; and I've actually used the Wii U a good bit...mostly for emulated games from older consoles, but also for some games that are available on PS3 and Steam.
Maybe the Wii U would've been a huge success if it weren't for the iPad and every kid already having a tablet. It was obviously a great idea, but too late. Kids do have tablets, so the Wii U is being discontinued. Nintendo needs to release their next console to be better than the PS4, not just equal to 5-year-old technology. And if VR is the next big thing, they need to get on it fast or be left behind.
Actually the Wii U gamepad already does VR in 360 degrees with movement-tracking, meaning that Nintendo has had VR software released since 3 or 4 years ago. So you could plug some goggles into the Wii U and use software that's already out. Forget the goggles, you could literally strap the gamepad to your head and have VR with the controller that's already out. But they haven't done anything with it. They actually have a $5.00 download that lets you view Google Maps Street View in full VR using the Wii U Gamepad. It's great. But nobody knew about it, so they've just discontinued service for that software.
At least Panorama View doesn't need online support and still works:
https://www.youtube.com/watch?v=Yj5K4a_-tdY