How is this state much different from installing Steam on a PC with a couple controllers and sticking it in your living room, besides the C64 being extremely cheap and (as far as I know) not as customizable?
PCIe slots can carry you pretty darn far, and if you can use a Genesis cartridge, you can upgrade a PCI slot. For instance, on mine I added: USB 3.2, an NVMe slot, and a new graphics card. If I wanted to, I could throw in a faster network card. I could easily use the latest generation graphics cards without issue. I can play a game with at least 60fps in 4K. The only thing that really limits you is the CPU socket and the memory. Even then, after a few years you can throw in the highest end (or near highest end) server CPU for dirt cheap and some better and larger sticks RAM for not so bad a price either.
> The appeal of a console is that it's an appliance - you can just plug the thing in, not worry about any of the technicals, and go play games with minimal fuss.
Also there was certainly a chasm in capability between the 386 and c64 but the games weren’t there and you would have had to spend a lot more. At that stage anyway we had Amiga which really wasn’t surpassed by PC architecture until maybe the late 90s
The appeal of a console is that it's an appliance - you can just plug the thing in, not worry about any of the technicals, and go play games with minimal fuss. If you are an enthusiast of such things and inclined to tinker, I think making a Mini-ITX PC to stuff under your TV mostly effectively already covers this niche? You can pick out your parts to your liking, it will be small, it can run Linux, play VR, and be programmed and customized effectively to however much of your system you can grasp.
And Sony, who has spent like 80 years making locked down media formats for their consumer audio/video/gaming appliances that compete against industry standard formats, is unlikely to ever be the company that makes an open gaming platform.