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Soundwave said:

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. 

IF this rumor is true and next Xbox really is more powerful, it could actually benefit Sony. They would have the more affordable console.

@bold
Don't worry, PS4 won't be low-end.