Both will either 1UP the Wii U in hopes of denying nintendo the hardcore fanbase, or will have to innovate to convince consumers the upgrade is worth while. Without a major graphics upgrade, any of the new consoles are going to be giving themselves in uphill battle to justify the cost. By 2013, we will have had 2-3 new iterations of graphics cards and things that are up there now (GTX 580) will be in the lower 200s or high 100s range, making it plausible for MS/Sony to get a mass market discount and put em in their consoles.
But a modest step in power will make consumers ask "How is this different than what I own?" I do not believe MS/Sony will risk investing in a console that has such small limits.







