IMHO the lack of innovation is due primarily to cost of development. AAA has entered the same territory of Hollywood Blockbusters.
They all play it safe while appealing to the lowest common denominator to maximize potential audience size in effort to reduce risk. At 10s of millions of dollars + 3-4 years per game, there just isn't much room to manoeuvre.
As for the sweet spot in technology ... I would argue it was the PS1 rather than the PS2. During the PS2 era, it was already getting quite expensive to develop games, so much that developers like Naughty Dog "sold out" to Sony - their founders didn't want the stress of running such a high risk business and partly because they were looking to retire.
The PS1 was really a golden era for developers IMHO. Development cost were reasonable where a small team could knock out a decent game. Media (i.e. CDs) cost was practically free with a low lead time - in contrast to cartridges.
They all play it safe while appealing to the lowest common denominator to maximize potential audience size in effort to reduce risk. At 10s of millions of dollars + 3-4 years per game, there just isn't much room to manoeuvre.
As for the sweet spot in technology ... I would argue it was the PS1 rather than the PS2. During the PS2 era, it was already getting quite expensive to develop games, so much that developers like Naughty Dog "sold out" to Sony - their founders didn't want the stress of running such a high risk business and partly because they were looking to retire.
The PS1 was really a golden era for developers IMHO. Development cost were reasonable where a small team could knock out a decent game. Media (i.e. CDs) cost was practically free with a low lead time - in contrast to cartridges.