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I don't think specs were the issue upfront, but they have been more and more an issue as the generation wore on.  3rd parties fucked up, end of story.  The smart ones will do better next cycle.

I expect the spec jump from PS3 to Wii 2 being similar to that of PSP to 3DS.  So within the same rough "generation", but a pretty significant increase none the less, with a far more capable graphics chip.  And yeah, I expect we'll see both RE5 and SSF4 around launch.