It's a tough question, because I think that the console world is changing anyway - by that I mean, what we consider a "game console" is changing. I think all game consoles are slowly moving closer to what we see with devices like Apple TV; no physical media at all, all content downloadable, and a box that is focused on games but that provides a platform for all kinds of entertainment.
It could be that console manufacturers are moving closer to an interative hardware development plan, where we see new models every couple of years, but there's still broadly "backwards compatibility" with software. I mean, think of your smart phone, and the way that when a new phone comes out, the older models don't immediately become redundant for new game releases. I can sort of see consoles going in that direction.
As for whether or not they "need" to? Well, I'd actually have said that hardware power is becoming less important over time, not more important. I mean, despite all the comparisons between PC and console graphics, I actually don't see a huge difference there; when you see side-by-side videos, it's rare to see a highly noticeable change from console to PC. Mostly, you get things like better frame rate, longer draw distances, and maybe improved anti-aliasing and stuff...but that's about it. And as hardware evolves, I think it's clear that the horsepower is there, and it's not so much a horsepower problem, but rather an optimisation and porting problem (as well as a disk space problem!)
That said, the key reason why I can imagine the sudden need for more powerful consoles is because of the adoption of VR technology. If Sony and Microsoft are keen to push VR as being a significant part of the console experience (which makes sense - I think VR makes more sense in the living room than it does in the study on a PC), then it's going to be necessary to have the hardware to support it. It won't necessarily make sense to wait another three years to put that into the market if they want to capitalise on early-adoption of VR sooner rather than later.
Anyway, those are my thoughts. Nothing too concrete...I guess it all comes back to the broader landscape changing. I'm not sure if frequently-updating console hardware is a good or a bad thing, so long as I'm not constantly being blocked from playing my existing library. For me, backwards compatibility is the biggest hurdle to jump in order to convince me to keep updating my hardware (and obviously in the PC world, that is a non-issue really).
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