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Just you. They aren't competing. Right now, PS4 is being acquired by early adopters, people who put more money on gaming. These kind of people already have a PS3, 360 or both (and maybe a Wii). PS3 now will sell to people that doesn't have money to buy a PS3 and 3rd world countries.

In Brazil a PS3 costs US$ 500. In Argentina it's even more expensive. People in these countries are planning on getting a PS3 or a 360, they don't even think about a One or PS4 because of the costs. PS1 sold 25M+ units of the redesigned PSOne model (launched in 2000). PS2 sold 40~50M units during PS3 run. PS3 will sell 20~30M more units in the next 6 or 7 years before being discontinued, with low production costs and a decent profit margin.