I have literally never in my life bought the next generation console because I had run out of games that I was planning to play on the current generation, and my first console was a NES. Every upgrade has been a matter of convenience because someone was getting rid of their old (new to me) console, or because I was interested enough to give the new one a try at a reasonable price point. Never "Oh my god, I've got to have that new console, I don't give a fuck what it costs!"

I'm not sure how concerned game companies are with the upgrade demographic as opposed to the "I'd like to buy a new console" demographic, but if everyone bought new consoles the way I do, the industry would have crashed back in the 90s.