Hello Everyone,
People are buying phones/tablets, and playing the no/low cost garbage they have. This is taking away from, and arguably, changing the landscape of the industry. AAA publishers are also eating away at the industry by recycling garbage and making it impossible for the smaller devs to make headway with new concepts on consoles (spare a few).
Those free games are ad based, and this makes up for a large chunk of their revenue. The hardware is subsidized with the data plans. Here is a concept I was toying around with and I was using Nintendo's product's as an example:
A $99 Wii U, and a $50 3ds. These are heavily ad supported, with mandatory time spent viewing ads, maybe 10 seconds between applications. You can pay the full price, and remove the ads. Games are priced at $free-10 with the ad scheme. Again, you can pay the full price to remove the ads.
My hypothesis is that this would make the install base explode, provided Nintendo could secure the proper marketing tactics. The problem is that this is easily copied. However, Nintendo has an advantage with software, and an actual incentive to be very far ahead at first.
So yes, you will get a bunch of crap software, just like with Droid/IOS, but you will also have the decent-to-great stuff that we have now. The only difference is, they have an optional way to adjust to changing market conditions.
This sounds insane to stupid. Just think about it for a second and then respond:).