The whole Ferrari argument will work if Sony does indeed release the PS4 at a $500 price tag, in which case it may be another disastrous launch like the PS3. I'm going to give Sony the benefit of the doubt and say they learned from their mistake. So I'm imagining they might sell the PS4 at $400. If that is the case and we are looking at it from purely a hardware perspective and nothing else, then it doesn't make sense for a consumer to go out and buy a Wii U over the PS4 with only a $50-100 price tag difference when you can get a console that is significantly more powerful than the other.
But of course that is a very truncated version of the whole story. No one buys a console simply to boast about how powerful it is. Really the final point is the games and the support each machine will get in terms of games and other services will decide how well they sell at the end. In that sense Nintendo has a chance, but 3rd party games does not look to be fully on their side as of yet whether or not the Wii U can handle it, and after the PS4/720 releases, it may only get worse. Time will tell.
