Comment by meatsock

i think perhaps game studios moved on to 16-bit sound as the platforms evolved from using on board sound synthesis chips to sampled, real world sounds, because it became available. a similar dichotomy can be found in the analog synthesis; when digital technology was coming into vogue with manufacturers, analog had ceased to be the most cutting edge technology, but was by no means dead or obsolete.

another problem with game console sound is the long development time needed to get an actual computer chip ready for market; the curtis CEM series of sound-makers were excellent and widely used but had a hard time competing with something that could be altered or upgraded in software. they're still used in some new gear being made today, but no new console would dream of using one.

i don't see how hardware evolution was 'a problem with innovation', i view the trend as more of the nostalgism that is coming around these days.