True that is the danger, although the thing is that both Sony and MS sort of realize that the next generation isn't exactly going to be the same leap that previous ones were due to costs. Sony and MS could create systems that more then triple the output of their current devices but in doing so run the risk of pricing out developers. This is especially a danger in Japan, where most development has shifted over to portables not just because of esthetics of smaller devices but because developers are not seeing or liking the higher risks of throwing tons of money or development time into games, especially with the home market of Japan leaning toward genres that don't require such.

We see it as well in how many studios are getting shut down because despite putting massive amounts of effort and money into their projects and may not get a profitable return. Sony and MS are going to milk their current systems as long as possible until they get an idea on how to combat Nintendo and each other.

Well, unfortunately for Sony and Microsoft, the only thing in the way between the Wii and a market monopoly was lack of solid third party developers.

R.I.P. Ps4/Nextbox

Well, playing with a xbox controller on the PC is kinda like cheating ;) But I probably will need to get me one of those if the Wii U sucks and don't get all the games...

I agree with pretty much everything you said. PS720 won't be a huge leap (though, they will be stronger than Wii U), and for several reasons: Sony can't afford making a costly system, so there's no need for MS to make one either, and developing for games are expensive at it is... But it sure will be interesting to see PS720!!