There is so much wrong with this.
You said that you use your console to watch netflix and what not.. which is perfectly fine, but if you think that people would hash out 400-500 dollars to watch Netflix then you are wrong. What makes people buy consoles is games! I seriously doubt you would have coughed up about $200 to watch Netflix on your Wii when you could easily just hook up your laptop to the tv. Also gaming companies do realize that gamers want both forms of entertainment. That is why all next gen consoles are hooked up to internet browsing, netflix, blah blah blah all that stuff that the people coughing up the money tend to not give two shits about. Oh and your analogy doesn’t work, it wasn’t because of America’s car industry not embracing the hybrid engines that put the industry in a tanker. There were so many factors but the important ones were the whole union and labor issues, declining US economy, high oil prices and of course their own stupid mistakes. I do agree that Japanese cars had an influence on the auto industry crises, they were superior in many ways for a fraction of the price, but nowhere near close enough for you to make that analogy work.