LMFAO...good one!!!  

I think the success of games on mobile phones, the Nintendo DS and Wii demonstrates that the vast majority of gamers and game-play experiences can be satisfied by hardware which is much less powerful than the HD consoles currently are. If the Wii U is more powerful than the HD consoles there will be very few gamers that would be dissatisfied by the gameplay experience it could provide; especially if some of the rumoured hardware is correct, because that would put the Wii U as being (at least) 4 times the processing power of the HD consoles.

Nintendo's challenge is to attract current Wii owners, and gamers in general, to migrate to the Wii U primarily based on the new user interface and not to worry too much about the potential processing power of their eventual competition. The reason for this is simple, selling people a system based on processing power enhancements past the HD consoles is sort of like selling the XBox and Gamecube based on their graphical capabilities over the PS2, or the N64's graphical capabilities over the Playstation; certainly, there are some noticeable and desireable improvements, but it is not enough.

LOL

Umm third parties have always developed for two or so consoles. During the GameCube era online and lack of a user base is what lead to it not getting all the ports PS2 and X-Box got. But if two consoles were relatively the same Nex-Box, WiiU and PS4 was drastically more powerful. I bet most games would be made multiplatform between WiiU and Nex-Box rather then developing a much more expensive port for PS4.

The major reason Wii gets left out is because of the drastic difference in power. Developers have to devote an entire team to porting to the Wii. They have to downgrade everything and alter their origional ideas to work on Wii. But if WiiU and Nex-Box are alike power wise then developers will have a much easier time creating multiplatform titles ignoring Sony.

If Microsoft goes for the same power as WiiU it would be suicide for Sony to go drastically more powerful and have a much higher price tag. It would be PS3's launch all over again accept this time they'd have two inexpensive competitors while their console costs a shit load! With less software support. It wouldn't be good news for Sony!

If none of the next gen consoles will have next gen power under their hood. I wont buy into next gen. Maybe later for 199/99 to play exclusives. I will stick to PS3 and if I want next gen games, PC.

Surely hope that this wont be the case especially after the AMD statement of Avatar like graphics that pointed in another direction.

I seriously doubt that any of the 3 would price their next gen console above $400. 

Plus, as long as the market's there, 3rd Parties will develop ports( which are inexpensive to do by comparison to the totality of  a single game development) on that system, PSWhatever included.  The success of something like Steam proves this.   More than likely, you just wouldn't see any difference from 3rd party games visually or how they play on any of the 3 consoles until later on in the Gen in which the PS4 would have enough of an install base/horse power to warrent it as the primary unit for development.  

I believe that between the dominance of the Xbox Brand in English speaking (Primary language of course) countries and the superior appeal and performance of Nintendo's first party, that Sony releasing something equal to them in power would just as likely make them the odd man out as would an insane price point at launch.  They may still sell some PS4s, but wouldn't even sell as many as they've sold PS3s, as they would just be the another "me too!" console release. 

So the next Xbox will come out fall 2014 then?

No. It's Fall 2013 based on the info in the article (engineering samples of CPU and GPU ready early 2013, large-scale production in time for Holidays).