There's plenty of opportunities to buy open hardware. The benefit of a closed platform is that it enables selling the hardware at a loss (money is made on games) and it prevents cheating that is rampant on the PC.
re: the business model - Put a price on flipping that mode switch. That solves the business model problem too.
Cheating does happen on PC. I've seen it maybe twice in the last 15 years. Wouldn't call that rampant.
Losing at a video game does not mean your opponent is a cheater. This might sound dismissive but the number of times I was called a cheater when barely managing to win has me convinced that people just don't like losing.
I think I can safely say that every competitive online game with a sizeable player base has a cheating problem. How bad that problem is varies - my impression is that Overwatch is pretty good (I've never noticed cheaters, only heard reports), whereas Rainbow 6 Siege is much worse - I have noticed cheaters several times and have had MMR awarded due to matches lost to people later banned for cheating.
I'm told that Dark Souls is the perfect storm of peer-to-peer and trusting clients, but I've only seen videos of cheaters, never in-person. And I've created many characters purely for invasions and summoning.
Amusingly enough, one of the two times I referenced above was actually in Minecraft of all places. We started noticing one player getting resources far faster than everyone else, faster than was reasonable for even a very good/lucky player. I mean multiple nether stars in the span of half an hour, that kind of thing. I think they were filling up books and that somehow let them duplicate items.
Some games have lots of cheaters. Some don't have any.
Doesn't mean they cheated, new game plus is a thing, and the summoning levels (and now weapon matchmaking) are easily gamed to allow you to invade people less well-equipped than you are.
I've seen videos of actual cheaters, who hit you with a homing soulmass and it breaks all your equipped weapons and armor. Or they never run out of stamina. Or whatever. But I've never seen one in person, and I've wasted far too much of my life on that game.
I don't think most people know how to evaluate who is cheating and who is not, and it's taken as fact that cheaters are rampant so claims of cheating are believed by default.
I'm definitely not saying that cheats don't exist, or that people don't use them. I'm saying the community at large appears to have jumped on the problem as a way to save face. "Oh he beat me, but it's only because he's wallhacking!"
However, I am calling the god-like players who own me hackers, when I watch their kill-cam jump rapidly to each persons head with absolutely precision shot for shot. It gets into an area of response time where the human feedback loop takes longer than the response-and-inputs being delivered.
Getting accused of being a cheater is actually more common. One time some guy spent 10 minutes frantically trying to convince everyone that I was aimbotting...on Pyro. I wasn't even doing that well.
That's exactly what I'm talking about though. The fact that cheats exist is used to save face when people are losing (or even not winning by a large enough margin) in a video game.
It's okay to lose in a video game. I do it all the time. There's no shame, you don't have to make excuses, it's a game.
Valve Anti-Cheat (VAC) is probably one of the best anti-cheat technologies out there given the size of the user-base and the time it has been deployed.