Simple, both previous gens are still selling, and selling well. You don't cancel something that is making money.
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That and the previous generation of systems never really ran their full lifespan. This generation of consoles was actually a year or 2 earlier than it should have been.
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Nah, the 10 year lifecycle was always just a marketing myth. 5 - 6 years is as long as any console needs.
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Its not just the years, they hadn't really even pushed the last generation to their limits yet. At least not as far as the Xbox and PS2 were. I'm glad the 4 came out, don't get me wrong, especially with all the problems that the 3's split processor caused.
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Because they are dirt cheap. Why buy an obsolete system that won't have online support in 2-3 years.
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Hey I up graded to a PS4, but the OP asked why Sony and MS weren't pushing the next gens as hard. 360 and PS3 are still making money. They wouldn't just turn off the revenue stream.