No, but they can make the console like the PC platform, where you are free to swap out and add components so that games can improve and evolve rather than staying the same overall GFX level for 3-5 years.
But then how do you deal with those people who don't/can't upgrade their consoles? Do they get excluded from playing the "upgrade required" games completely? Do they have to suffer lacklustre performance or inferior visuals?
The N64 already tried the approach you're suggesting, essentially forcing people to buy more hardware so they can continue playing the latest games.
The N64 already tried the approach you're suggesting, essentially forcing people to buy more hardware so they can continue playing the latest games.

Is it true that GTA IV will simply not run on single core CPUs, by the way?
Nobody has a single core CPU nowadays...
How do you deal with it on the PC? You do the same on the console (in effect making the console nothing but a gloryfied vendor-lock-in gaming PC).
I'm not sure how that test was carried out, but most people probably own a system with a single core in it, but for there main systems it is probably less. I mean I still have a single core CPU PC in the study, but the main PC in my room is a quad.
I think most people who want to play GTA IV will either have a console or a dual core PC at the very least.
that test is old anyway as the best card on there is a 8800GTX and 10% have one, apparently making it the most popular card, hmmm...
hmmm, perhaps, but you can't hold onto a single core forever. The industry has to move forward. Most other modern games would run pretty shoddy on a single core.

Yeah true, especially as GTA IV doesn't seem to be the most CPU intensive game in the world.
I don't think many modern games will run on a single core tbh. Except maybe the sims.