Well this would mean Xbone might come in closer in performance to Wii U, which then makes PS4 the overpowered outlier and hence if 3rd parties start showing WiiU some love it means PS4 power gets underutilized by 3rd parties on multiplat titles. Unless of course PC is the primary dev platform in which case the devs will port to PS4 with a small to moderate downgrade, and then further downgrade to WiiU/Xbone level performance.
It still really comes down to whose exclusive library you prefer. And if MS is buying up some 3rd party exclusives it means they'll be looking for those exclusives to really deliver.
Reliability is a something on which MS can't afford to fall down. You can't release 2 systems in a row with a high failure rate and expect to sell big numbers. So powering down a bit to ensure low failure rates is totally worth the trade off.
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