Gaming in general is a different business than it was in the 90s, consoles on the other hand is more or less the same business model since the 70s.

Sure it has. The industry is much bigger. Game development is more expensive. Online strategy is important. Consoles cost more to develop and are frequently sold at a loss for years. There's competition from non-traditional markets ( tablets and smartphones and in the future, Android set-top boxes and the like). Indie gaming has made a resurgence.