Why PS4 won't be cutting edge, and neither will Xbox3 - or Why Nintendo might win next gen

[binary solo]

360 can live with superspec (for a console) because it's basically a PC in drag. That means 360 gets all the support of the developers who are making PC versions of games. and lets face it, all the greatest selling Xbox games are either on PC or are Xbox exclusives. So Xbox being out there with super specs would be fine (albeit having to sell the HW at a loss). It's really only Sony that would be screwed if they made a super-spec machine (and had to sell at a loss) and MS only took half a step forward and put all it's effort into Kinect 2.0.

While on many levels Sony has made poor decisions with the PS Vita. The one decision they made, which bodes well for PS4 launch, is they are selling each unit at a profit. Sony will launch the PS4 aiming for each unit sold to be profitable, perhaps not a vanilla PS4, but as long as the buyer buys an extra controller, or they buy 3 games then the over all sale will be profitable. i.e. the unit loss for a vanilla console will be small, like $10 only.