According to both Microsoft and Sony they've been trying to extend the life cycles of the systems. One of the things the Wii and PS2 taught is that backward compatibility=large library. Which is a good thing.but backward compatibility is a pain in the ass.
Besides modern games are so well done it's hard to tell if you are looking at live action or video especially if you don't scrutinize it too closely. RE7 looks at least as good as the Hulk on the big screen. So marginally better graphics but crappy library is not a winning game plan.
This is a bit bad for producers though. History has shown that new franchises have the best chance of success when they drop with new system. Maybe you are the person who randomly buys new games at full price knowing nothing about them. Most of us bought Arms however because there were like six games and we'd already sank 150 hours in Zelda over two weeks.