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HappySqurriel said:
First off, it is already obvious that it will not just be "on par" with the HD consoles; but the extent of the improvement is not really well known yet.

With that said, the amount of processing power required to create a meaningful improvement has been growing steadily in each generation; and to have a similar impact as a 100% increase in processing power had during the Playstation/N64 generation (an impressive but not game changing improvement) would probably require a processing power increase to 4 to 8 times in processing power in the next generation. With this in mind, why would you focus on cutting edge hardware when your customers aren't going to care and the increased costs may discourage them from buying your system?

Agreed, 100%.

While none of us really know for sure, it is extremely unlikely that Microsoft's and Sony's next consoles will dwarf the Wii U like their respective consoles did the Wii this gen.  Not unless they're coming out much later than we think or they plan on losing a lot of money from the get go, which Sony in particular has learned is not in their best interest.