Cut down production costs. Make games about art and creativity again instead of pumping out tried and true clichés for all eternity.
Actually add innovation to both the way the market handles itself and the games themselves, especially in game play.
I keep getting the feeling that developers are trying to push better hardware before it is economically feasible and are paying the price. I think they should collectively hold back until they can release a system that will have a development market to match its capabilities, which should be sufficiently innovative to warrant a new system in the first place.
Shouldn't have to mention DLC and region locking.