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

[JEMC]

Train wreck said:
I dont think sony's financial situation is stopping them from making cell phones that retail off contract for $500+ dollars (including their upcoming 1080p phones) or high end laptops, or tv's or cameras. Sony will manufacture something that is highly spec but reasonably priced due to not having multiple proprietary items.

The problem is not making it high spec'ed, but selling it for a profit.

Sure, Sony makes $500+ cell phones but they make money when they sell them. And the same goes for their laptops and cameras (not so much on TVs which is one of their divisions that faces more troubles).

The problem is when they make those beasts but sell them at a loss, which is the case with their consoles. And their economical situation forces them to stop losing money.

The way I see it, they only have 3 solutions:

1-Act like always: make powerful machine and sell at a loss. This will result in Sony going bankruptcy.

2-Make a powerful machine and sell it for a profit. The console will be expensive and few people will buy it. Sony won't lose money but developing for them won't be a necessity for 3rd parties.

3-Make a modestly powerful console and sell it for a profit. They won't have the most powerful console but since the price will be atractive they will sell more units, making them win more money while still being important for 3rd parties.

Which way would you go?