I'll answer your questions as I forgot
The question is how much more faster will it be to the 360 as well as the wii U?
The HW will surpass WiiU and 360, that's all we really know at this point AFAIK.
Are they willing to sell it at as much of a loss as with the 360?
Considering the EDD was profiting in 2007, 2 years after 360 launched WITH RROD included, sure they will, X360 seemd to break even pretty fast, and they have a shit ton of live subscriptions to even it out. I don't think they will want to make dramatic losses on each console sold though.
And will Sony stay with their ten year PS3 cycle?
They will even if they release a PS3 this xmas, ten year doesn't mean ten year without a console, it means 10 years manufacturing or/and getting SW support. X360 will reach 10 years and Wii will more than likely reach it too. Probably not the SW side though 
