Lots of strong opinions with some based on a misunderstanding of the OP. First, it's not this generation it's a future Game Console generation that is in question.
Pachter and others with an understanding of what's coming were making predictions at CES 2015. There are multiple factors and I'll try to list them:
1) A new way to play games => AR, VR, VR Goggles with eye tracking which makes this generation and a fourth Console viable.
2) Media Hub and DVR for DLNA-CVP2 and ATSC 2.0 with game and media streaming to other platforms in the home. The same codec encoders that allow game streaming will be used for Video and Audio Chat.
By 2017+ the three network convergence (VOIP, IPTV, IP) with everything served as IP from a cable modem, will shift into high gear. The traditional phone will start to die being replaced by VOIP chat programs. Everyone will be required to have Top end smart TVs with voice and gesture control with the camera doing double duty for video chat or a STB with the same features. Vidipath (DLNA CVP2) certified platforms are the start of this.
The XB1 and PS4 are designed to support the above.
All AMD APUs contain Xtensa DPU processors and Eye-Sight middleware for gesture recognition. The GPUs in older APUs required for decoding and those same GPUs-Xtensa DPUs can be used for audio. Kaveri and Carrizo contain more powerful audio and Video DPUs that don't require GPUs for Codec post processing and can support HEVC decoding. The XB1's APU also contains an ARM buss and Xtensa DPUs and likely supports 2016+ AMD SoC features. Only the PS4 APU does not have Xtensa DPUs and a ARM buss, they were moved out of the APU to the PS4 Southbridge. This may have been because they used hot and power hungry GDDR5 and GDDR5 memory couldn't be used for low power IPTV and AOAC features, thus the PS4 Southbridge has it's own 256 MB DDR3.
In the PS4, moving all features that need low power to the Southbridge also creates the conditions for a
ARM TEE level SoC as Southbridge. It can support Other OS on the APU while maintaining a Secure Southbridge that supports DRM and Low Power IPTV.
3) By 2016+ AMD X-86 SoCs with the performance of a PS4 will be available in a cheap and power efficient STB that can be used as a PC or game console connected to the living room TV. It will also be used as a Media Hub and DVR as well as game streaming for other platforms in the home.
4) HTML5 and W3C extensions like WebGL, WebCL, WebVX, WebRTC, Java, DLNA and more combined with WebGL desktops in PCs, XB1, PS4 will eventually create a convergence where HTML5 apps replace nearly all native language programs. The UI will become simpler with all the complexity of Linux/Unix hidden from the user and Linux WebGL desktops will be functionally identical to Windows 10+ desktops.
From the article Pachter makes some compelling arguments:
1) Pachter said that phones and tablets will catch up with consoles, and as soon as that happens consoles are unnecessary.
Phones and Tablets on batteries can never catch up with PCs that have no power limits. Only if Governments cripple PCs with power regulations will PCs not be able to compete. PCs will likely be used to stream AAA games to Phones and Tablets with Cloud streaming (Gaikai like) being an option for those without PCs. He also fails to see that a PC is needed as a Media Hub for Vidipath and ATSC 2.0 and for central storage. and in several Sony patents as a distributed processing resource.
2) I think the opportunity is immense, and if you bypass the console — you expose your game and content to anybody who has any type of device with a microprocessor.”
WebGL Games with OpenVX and OpenCL are coming
3) Pressed on whether we are currently seeing the last-generation of consoles, Pachter bluntly assessed the prospects of Nintendo, Sony and Microsoft. He said each company will give it at least one more shot,
Microsoft: “Microsoft is different. They just created a Windows 10 division and transferred over a dozen people from the Xbox division, and there is a reason for that. Because they are going to try to integrate gaming into all Windows. They will come up with something, it will be a Surface Pro 7 or something. There will be another console from them.”
Sony: “I actually think Sony gets it, shockingly, because I don’t think Sony gets very much. But they do get this. Their whole thing with PlayStation Now and PlayStation TV, those are kind of off-console gaming platforms. That’s big for them, “In the past, the things that we said were going to kill the console, but didn't were all bad for Sony and Microsoft.
Now, the things that may or may not kill the console (the tablet and phone), are actually potentially good for Sony,” he said. “If PlayStation Now is successful, that may be a better business for them in the long run than actually shipping a box. And they may not lose any of the market strength that they have in the ecosystem through that.”
China opening up to game consoles was not mentioned and that is a potential game changer. It plus Vidipath support (DLNA CVP2) might make a refreshed Xbox 361 (Mini Rumors requires Windows 10) and PS3.5 practical, the former is more likely but there are two
Sony patents from 2010 that rely on HBM for Cell and HBM will show up in 2015.