>How exactly are you supposed to stop shit-eaters from eating shit?
You make it impossible for shit to ever touch the plate.
I think a lot of people neglect to consider the causes of the gaming industry's decay and instead obsess over the effects they brought about. In my opinion the downfall was between the sixth and seventh generations. Prior to the sixth gen gaming was for kids and enthusiasts, but the explosive success of the sixth gen fueled by kids aging and continuing to hobby told everyone in the financial world that gaming was the next big thing.
Normally, this would be expected. There is always someone looking to make a profit off the next thing. However, 2008's recession hit in between the transition of gen six to seven. Thanks to this there was simply less people willing to buy these consoles and video games that were much more expensive than the last generation's. At this point you have rising producers lacking customers and investors looking to recoup their losses from other markets with this big thing. The answer to both of the two party's worries was to double dip a percentage of customers willing to spend even more money. The customers are used to it, right? They already do expansion packs on PC, we'll just reduce the content by a lot and the make the price less. Of course, now that we're looking to double dip our more spendthrift customers we should increase marketing in order to find more. Shit this marketing is expensive, and it doesn't reach everyone. Lets make everything multiplayer, that way customers will pressure potential customers to buy our shit too.
This worked for a time, but the profits needed to be higher. Where do you find new customers when you've thoroughly saturated the market? You target new demographics, after all it's not like your current demographic has anywhere else to go. So, women began being heavily targeted. Didn't go all that well, due to women having several other markets already competing for their patronage. Luckily, there's a new rising demographic industries all over are currently courting: The LBTGSADFGIAFNDAF. This demographic wants lots of escapism, has plenty of disposable income, and doesn't give a rat's ass about quality so long as they feel represented.
Back to the main topic of how to stop shit from reaching the plate. You simply release a cheap, $200-300, console with games priced ~$20-40 lacking the ability to connect to the internet. Bonus points for a bunch of first party exclusives to encourage adaptation.
The goal is market saturation. People are going to be more willing to buy the cheaper console for their kids, and teens are more likely to aim to save that much to buy their own. When your console dominates the market share third party developers will pay you to release content on your system to access that market, netting you a profit and more reasons for your console to be adapted.
>why no internet?
This completely and totally removes the ability for developers to attempt to sell DLC on your platform.
>what if people mod it to connect to the internet?
There would still be no enticement in releasing DLC and the like, because the grand majority won't mod it.
>why cheap games?
It encourages those who own several consoles to favor yours. Why buy some $5 DLC on an xbox title when you can save it a while longer to afford a completely different game on /v/sphere?
>what about demographic pandering?
I admit, this doesn't exactly solve this effect. But, it solves the effects that snowballed into it.