For the manufacturer, it really does make a difference to their bottom line. The "software tie ratio" of console games in the 360/PS3 era was modest - somewhere between 3 and 8 according to this graph [0]. Getting unit cost down matters a lot when you aren't selling a lot of additional content, and the hardware got optimized around whatever game developers could soak up the most.
As such it was conventional for game consoles to have fast-but-small RAM. The reasoning is that console games mostly bottleneck on the rendering of a scene at acceptable framerates, vs. simulating all aspects of a complex scene or achieving maximum detail as a movie would. Since ROM cartridges were fast and optical allowed data to be streamed in "fast enough", there were plenty of ways to achieve the right effect under tight RAM conditions. One exceptional case where tight RAM did not play out well is the N64's 4kB texture cache, which imposed a large burden on the entire art pipeline(if you wanted a high res texture, you had to resort to tricks like tiling it across additional geometry).
Today what is demanded from a console is much more in lock step with every other consumer device - they do more computer-like things, they can multi-task some and scenes are doing more memory-intensive things so they're more well-rounded, and get more RAM.
As such it was conventional for game consoles to have fast-but-small RAM. The reasoning is that console games mostly bottleneck on the rendering of a scene at acceptable framerates, vs. simulating all aspects of a complex scene or achieving maximum detail as a movie would. Since ROM cartridges were fast and optical allowed data to be streamed in "fast enough", there were plenty of ways to achieve the right effect under tight RAM conditions. One exceptional case where tight RAM did not play out well is the N64's 4kB texture cache, which imposed a large burden on the entire art pipeline(if you wanted a high res texture, you had to resort to tricks like tiling it across additional geometry).
Today what is demanded from a console is much more in lock step with every other consumer device - they do more computer-like things, they can multi-task some and scenes are doing more memory-intensive things so they're more well-rounded, and get more RAM.
[0] http://vignette2.wikia.nocookie.net/vgsales/images/c/ce/Esti...