PS4 should not be so powerful next gen?

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I don't think the next-gen will be as big of a jump for MS/Sony as this gen was. I also don't think PS4 will continue to use the cell processor.

I see a more moderate jump with quad core type cpu's and the traditional jump in gpu's to be about on par with the best line of computer video cards of the time.

I bet they really try to keep the price $300-$350 with a much smaller loss, if any, per sale of each hardware (<$150).

MS will definitely not get into a RRoD type of issue again and Sony will definitely have a better software lineup within the first 3 months, by double what it had with the PS3.

I am unsure if they will try to "copy" Wiimote abilities or continue with the current control setup and still fight over the more traditional gamer space.

Nintendo will probably release a console last at it will probably be somewhere between the PS360 and the PS4/neXtBox. It will have HD capabilities as HD tvs will now be in the majority and the cost of that technology will have significantly decreased. Plus, as usual Nintendo will not support any type of video playback, though the player will be some form of HD capable disc like the VMD or something else that builds off of current DVD technology. Nintendo will probably also aim at continuing its channels and have a HDD with the ability to now dl GC games and play Wii games. As for the controllers, idk. Probably some linear growth from what the Wii currently offers on a much more precise scenario. This would help with BC and regain the new user base.

Of course this is all speculation and I could be completely wrong in every possible direction.