If they don't release till Q1 2014 a.k.a 3 months after Xmas 2013, then it is the same as handing Nintendo the home console market.

Microsoft alone can't compete with Nintendo due to the simple fact they are no match for Nintendo 1st party magic.
Also without PS4, 3rd parties have no choice: every multiplat on Wii U no matter what.

There has to be more diversity on shelves so there's a broader buying pattern and Nintendo can't establish a "Monopoly" like PS2 gen.

Not only that but his statement is too simple minded. The SNES lost a lot of marketshare because it launched late. The NES had 90+ marketshare. The SNES could barely beat the genesis. The PS2 was launched after the dreamcast sure but sega had to pull the plug due to the bad business decsions. The PS2 would get a headstart on the gamecube and x box which did a lot of damage. The wii was first but it was also the first for a market leader to not have leading 3rd party support and to be lauched last. The wii could've dominated more had they launched earleir.

Giving nintendo a year headstart is bad but giving them a two year headstart is sucidal . For example the PS1 was launched in japan in 1994 and the n64 launched in 1996. It was a 1.5 year headstart. The PS1 dominated and it didn't even have a two year headstart. Sony has to release a new console as soon as possible. Last time Sony gave Nintendo a year headstart was 3DS vs Vita. 

Also why would sony wait so long? Sega launched first with the dreamcast with their horrible earnings. Why would sony use that as a excuse. I predict it to come out on the holiday of 2013.

People don't get it really. If Sony went out of business, the Playstation brand would still be alive. They make a lot of money and too many people know the value of PS for it to die off as well. Do you know how many companies would jump at the chance to buy the PS brand? Too many, and in a heartbeat. Sony's woes aren't the PlayStation woes. They focus on their gaming end and that is it.

On the other end, if Nintendo went out of business, they would be in GAME OVER mode because they are a video game only company. That would directly correlate to their progress and health. For Sony, it's things like Bravia (TV) that are losing them money hand over fist. When you have divisions like in Sony, things like losses become not so clearly defined. Even when Sony was announcing they were in the red with their PS3, they didn't say they were making money from the whole PS branch.

^What he said.

Not to mention the new 84" 4K resolution TV Sony announced will be apparently over $20,000.

Nintendo's not at any risk of going bankrupt so I'll leave that alone, but the Playstation brand would be hurt pretty badly if Sony was to be broken apart ...

A large portion of the R&D costs and the upfront losses on systems like the PS3 are justified because Sony as a whole will profit from them. If Sony can use the Cell as a dsp in televisions (as they initially planned on doing) and the PS3 drives adoption of Blu-Ray, HD televisions, and surround sound systems then the PS3 acted as a catylist driving Sony's sales.

If a "Playstation" company existed and had to be profitable like Nintendo does, I don't see why it would be more successful than any other gaming only company that was in direct competition with Nintendo.

Exactly. They even stated that a repeat of this generation (launching a full year after the competition/Microsoft) would not be ideal. So, assuming that a late launch would be ideal, it seems like it's pretty much up to Microsoft to decide when PS4 will launch :P

they did however quite literally say that they would be last to lauch and making the best product is more important to them so....

If there doing so bad,then why do they keep bringing out all of these new high end products,such as those phones and T.V.s and etc,etc.

I expect Sony to launch in 2013

What Im more curious about is what their overall strategy is going to be since it wont be the most powerful next gen console

and what in the world gives you that impression? they've literally done NOTHINg to suggest they going crap hardware next gen