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I don't understand this ... the system is only a modest leap from the Wii U?

Microsoft is basically going to have the upper end of the market to themselves and the Wii U will take the budget/casual/kids crowd on the bottom end ... leaving Sony with what?

If there's a noticable power gap between MS and Sony's machines, even if its slight enough that it gives MS the edge in many multi-plat titles ... Sony's goose is cooked IMO. 

Nintendo can play the low-tech card because they have a very loyal fanbase tied to their classic game franchises and the heavy draw of 80s/90s nostalgia, Sony really doesn't have that going for them.