I guess it does make sense that the publishers did it. A group of 4 friends buying a game once and playing it together was fine, but it suddenly became possible to make all 4 of those friends buy their own copies, and their own systems. 4 times the profit. Which is a thought that turns my stomach. Yet another older convenience that has been negated by the almighty greed of corporate financial officers.
See, I don't give a damn about the hardware limitations. The PS2 and the N64 could handle it, and the PS3 and Xbox 360 can handle it too. Future Perfect took nary a hit to graphics or framerate to support four people at once, and I refuse to believe that the PS3 can't manage what the last gen could. Just make the graphics and environments a secondary concern. I think most of us (in this thread at least) would gladly pay for a new IP that did what Timesplitters did as well as it did, at the cost of cutting edge graphics. Seriously, does anyone go back to Future Perfect and lose interest because of the graphics? If you do, you are a hoity-toity twat.
Graphical capabilities do not have to define every new release. Give it a distinctive style, like Borderlands does, and you can find ways to cut corners on the actual processing demands. Even if you have to go all the way back to late-PS2 style graphics, big deal. It would be totally worth it.
Which is why I know now that it was the profit motive and greedy executives that did it in. Money grubbing whore bastard fucks.