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Competing on specs would mean competing with Playstation 5 too ... not PS4.

A "Nintendo PS4" launching in fall 2017/2018 would basically suffer the same fate as the Wii U getting no bump from having PS3/360 ports ... too little, too late.

By late 2017 PS4 and X1 will be approaching 100 million combined and have a library of hundreds of games each, nobody but Nintendo fans would buy the "Nintendo alternative".