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RE: Should an ICO be held for the creation of the ultimate video game console?
Do you know the blockchain project called Chimaera?
A few weeks ago I did a research about that project and it covers some of the ideas you are mentioning here, especially the ones that link blobkchain technology with the gaming world.
About the hardware, I don't really know what to add because I am not an expert at it, I just know a little bit about which processors are good, as well as GPU, SSD ... but the console would need to be powerful enough to play at 4k so its really at the forefront technologically wise.
I think it does need to have internal storage obviously.
I think a gaming industry can also bootstrap a decentralized community, and a wisdom engine or similar platform. Internal storage it would depend on the game. Certainly for certain games it is necessary but you can have web based games as well.