These are two different markets that we are talking about. I don't think the goal of the xbox, ps3 or steam box ever has been to distribute a bunch of low budget $1 casual games.
This is a potentially lucrative market, but it hasn't existed for 3 decades. I'm not even sure it has existed for 1. Changes in technology are only now making this possible, and tbh I hope all the console makers don't join this freemium casual game race to the bottom.
two and a half men and insert generic crime procedural are the most popular tv shows. Would you say CBS is disrupting tv right now by peddling a bunch of cheap garbage to the lowest common denominator audience.
The thing about $1 casual games is that they're now $0 casual games capable of drawing substantial income after the initial "sale".
Pre-paid boxed game software is not a growth industry, and post-paid digital is. It's not theoretical, this is happening now. It's not potentially lucrative, it's currently lucrative. The industry as a whole needs to adapt.
Consoles had three decades to break out of niche and they failed. It's time for the final disruption of the living room.