A game that can only be played on a specific console is an exclusive. The idea is, if for example Sony gets a lot more sought after exclusives than Microsoft, then they will sell more consoles. In this example, Sony would eventually annihilate Microsoft and Nintendo for example and dominate the market with an iron fist.
Once that happens, they don't have to worry about competition so the first thing that will be affected are prices. I don't think they will go down once the competition is eliminated. Of course innovation will go down dramatically as well. Even if you think your favorite videogame company is very innovative, 3 companies for example, offer potentially 3X as much opportunities to innovate.
Why would a hardcore gamer want that? Yet, read these boards and you will find countless comments about how someone is so happy because they believe their favorite company is going to destroy it's competition and rule the gaming world. It's astonishing that a gamer would not realize that is great for said company, terrible for the gamer.
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