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Horrible article.

- Sony's entire brand image/corporate image is based on high tech and quality these days. People shouldn't imply that Sony are going to be producing some inferior product. Sure, there's a chance the NextBox will be more souped up, but the PS4 will still be powerful. 

- Sony havn't implied anything really. They obviously do not want to lose billions again, and they haven't released any NGP specs - so we don't know if they are cutting RAM or not.

- MS aren't going to make big losses next gen either. They have shareholders, shareholders that will want to see the game business produce profits. Also as MM said,  Microsoft's money is going elsewhere. Sony isn't the threat anymore to MS - It's Apple and Google.

- Finally, I'm no stock expert, but I would buy Sony stock right now. The company is the healthiest it has been in 5 years and has forecast good sales increases across its core segments. It also predicts returning to operating profit, and Nintendo don't seem to be as dominant these days.