There are two things that bias the perspective of these business men.
The first is that they look at business models rather than what the consumers want, and try to shape the consumer to meet the needs of their business model. Their main interest, after all, is to make money. The best way to make money, reliably, is to have a plan and execute it. Selling a product without a plan is suicidal, particularly for large businesses that need to coordinate within their own structure and with third party developers and suppliers.
The second issue is that these business people know what their lives and interests are like, but they rarely understand the market as a whole. They have reliable high-speed internet because it is a function of their job, their lifestyle, and their income. They fail to consider that some people buy consoles because they live in rural locations and don't always have access to other forms of entertainment (or reliable, high-speed internet for that matter). They fail to realize that some people buy consoles because it is a relatively cheap form of entertainment, and may not be able to afford reliable high-speed internet. If the motivation is to kill off the second-hand game market, they fail to realize that even the big spenders use that to offset the cost of their entertainment. And that's just the stuff that would be easy for them to understand, because it is quantifiable. What about the stuff that is harder for them to understand because it isn't quantifiable, like privacy?