They should design a games console, but more powerful than the Playstation3 or Xbox360 with better processing power, better graphics hardware etc.
Assuming they would somehow be able to pull this off (money, hw designers, all 3rd party ppl you need to talk to etc), it would still fail:
1. It would be more expensive.
2. It would have no games.
With such powerfull hardware and maybe a good ad campaign they could get 3rd party support for games (such as from EA or Activision etc...)
That is not enough to get any game company's attention. You need a market... which you can't get with hideously expensive console with 0 games.