I just had a thought how to "beat" the supposedly inevitable iterative hardware model. IMO all you have to do is stick to a strict 5 year cycle.
Lets take PS4.5 now. Lets say MS releases in winter of 2018, exactly 5 years after Xbox One, the "Xbox Two". Which at least attempts to be a traditional console generation leap.
To me it takes the sails out of Ps4.5 in so many ways. It'll be significantly more powerful one assumes. Worse, the Ps4.5 will still be shackled to PS4/XBO ports, by Sony's own decree, making the paper spec discrepancy much worse on a screen.
The Ps4.5 is supposedly slated for Q1 17, but I would bet money it slips off that, like everything in video games. How far? Who knows, but I'd guess Q3 2017 maybe. Either way, you can start hyping the Xbox 2 in 2018, and hype of power destroys we know from PS2 v Dreamcast.
People will wonder "why should I buy this Ps4 iteration when better is right around the corner?" Worse, joe average will not be seeing much in the way of graphical differences with Ps4.5, still shackled to last gen.
The key to this thinking is I expect the platform holders will not release their "iterations" faster than every ~3 years. A 5 year cycle would really destroy that IMO.
However I do realize phones release a brand new model every year. So in theory it can be done. Again, a 5 year cycle vs a yearly iterated console though, well I'm not so sure who wins in the consumer mind. The yearly iterated console may have more power most years, but you'll never see it onscreen anyway, as it will be forever shackled to the past. It would also mean the yearly console will essentially have a forever locked price point at a high level.
But yeah, stop being lazy and do timely 5 year cycles and I think at the least you take a lot of the wind out of console iterations, if not destroy them entirely.