The industry in general got this trope quite wrong.
A few years ago, the belief that console game was on its last legs was so strong that a number of gaming companies believed they had to change their approach to production in order to stay alive. When the iPad hit it big, there were quite a few people in the industry who believed gaming was going to make a huge move towards the mobile and online platforms and leave consoles behind. While Microsoft and Sony believed the Xbox One and PS4 could reinvigorate console gaming, Square Enix reportedly believed the opposite.
Crave Online reports that online video game critic Jim Sterling is claiming Square Enix was so concerned about the future of video gaming that they cancelled a number of games that were in development and badly meddled with other titles. Sterling said his sources have pointed to the remake for Final Fantasy VII and the newest Hitman as the proof of the company going into a full on panic. Hitman was going to be an online only game, which is why it has been divided into installments. This is also likely why the company has had so many problems getting the game to market once it realized the PS4 and Xbox One sales were plenty healthy.
The lack of confidence in consoles might also be why Square has been hemming and hawing when it comes to Final Fantasy games. To be fair, Square Enix isn’t the only company that thought console gaming was on its last legs, but it is a company that might be front and center when it comes to gambling hard against consoles and being very, very wrong.