This is more of what I expect to happen ...
Much like how Nintendo took a "Step forward" with the processing power of the Wii U to make it more viable as a core gaming machine, I expect Microsoft and Sony to take a "Step backwards" in processing power to be able to release their systems at a more affordable price to be more meaningful for the broader gaming market from day 1.
At E3 2012 I expect Microsoft (and Sony) to release a bunch of videos which are pre-rendered "approximations" of what people can expect from their systems, along side a series of very limited tech-demos; and create unrealistic expectations for games on their system. The goal of this will be to have the Wii U compete against a "Phantom" competitor.
I expect Microsoft will put a greater emphasis on Kinect and may go as far as including an "advanced" version of Kinect with every system sold.
I expect XBox Live to become a free to the end user and Microsoft to try to pay for the service through ads delivered in game (probably between matches).







