Oh, you mean all the "extremely scalable" engines, like UE4? That engines supposed to work on smartphones as well as a high end PC. And of course they're gonna show off the PC version, making people go "Ooooh", "Aaaahh", "woooow"

It's not evidence that's how PS720 will look.

PS4 and 720 will be more powerfull. It's just obvious. You can't release a new, expensive, with few games console that isn't a improvement. Wii U is much more powerfull than Wii. That isn't much more powerfull than PS360, but it is a massive improvement to its predecessor.

It doesn't matter how is Sony financials, they will have to do a console that blows PS3 out of the water. If they don't, it simply won't sell and they will be dead. The best strategy is to release a powerfull one and try their best. If they couldn't afford it, they simply won't release anything and quit the consoles bussiness (what they won't, because is one of the strong divisions and they need to focus on that to survive). They didn't stopped making TVs and that division is a tragedy. It isn't likely that they will try to cut losses in a division that is in way better shape. It's easier to simply stop making TVs.

Regarding, MS, they have money and want a future-proof console. It will be powerfull too. Put there at least 4GB of RAM (maybe they even go for 8 GB). In the end, booth Sony and Ms want consoles like their predecessors, that will last for good 6~7 years without problems. A weaker console would be a problem. Sega did it, they tryed to go for the "incremental upgrade" way (Sega CD, 32X, Saturn, Dreamcast) and ended releasing a lot of consoles and selling nothing.

I think you'll be surprised what the Wii U can really do when they unveil Retro's new game... I know that PS720 will be more powerful than Wii U, the question is though, HOW much more powerful? I firmly don't believe it'll be like PS360 vs Wii - more like xbox vs PS2.

I think it's pretty clear that when we get these typically console games being shown off with all these fancy new effects, it's an indication of what Orbis and Durango will produce. 

MGS and Final Fantasy for example, aren't franchises known for pushing PC tech, yet the MGS GZ demo and FF tech demo looks beyond or on-par with what system-pushing PC games have shown lately (e.g. Metro: LL, Witcher 2). Are they spending god knows how much resources on all these extra effects and graphical features for the PC version alone, or are they targeting Sony and Microsoft's next gen systems? 

I don't see why kojima productions/Konami would be investing in all this awesome tech if only the PC version would truly benefit from it. Their bread and butter is console sales.

Am I making sense?

We don't have to wait until Retro's new game. Look at the Zelda tech demo. Furthermore:

I think it's pretty clear that when we get these typically console games being shown off with all these fancy new effects, it's an indication of what Orbis and Durango will produce. 

MGS and Final Fantasy for example, aren't franchises known for pushing PC tech, yet the MGS GZ demo and FF tech demo looks beyond or on-par with what system-pushing PC games have shown lately (e.g. Metro: LL, Witcher 2). Are they spending god knows how much resources on all these extra effects and graphical features for the PC version alone, or are they targeting Sony and Microsoft's next gen systems? 

I don't see why kojima productions/Konami would be investing in all this awesome tech if only the PC version would truly benefit from it. Their bread and butter is console sales.

Am I making sense?

The Wii didn't lose sales because the "fad" ended, the Wii lost sales because third party publishers were never willing to give it adequate support ...

Beyond that, you can see evidence in the challenge Sony and Microsoft will face in their next generation consoles by looking at the Wii U. At launch the Wii used 13.7 Watts on average while the Wii U uses 32 Watts on average, the Wii U is (roughly) 40% bigger in volume than the Wii is, and the Wii was sold at $250 and Nintendo claimed to be breaking even while the Wii U is sold at $350 with Nintendo claiming to be taking a small loss.

If you start applying a similar increases to the XBox 720 to get similar increases in performance, you're looking at a gigantic 300+ watt system selling for $500 or more while pushing Microsoft to take $500 Million losses every quarter. Remember that (at launch) the power supply of the XBox 360 over-heated causing systems to shut down, and there were incidents of house fires being started from these power supplies; so expect constant news stories of countless house fires as people foolishly played the XBox 720 they bought.

The argument that Sony and Microsoft will be able to preserve their processing power advantage is based entirely on ignorance, and the question isn't whether or not Sony and Microsoft will be relatively less powerful in the next generation the question is how much less powerful they will be.

Have you noticed that the tech-demos Sony and their partners shown off before their systems are released tend to have reduced detail, fewer effects, a choppier frame-rate and are rendered at a lower resolution when these games are released?

I have a theory about why Sony and their partners have the opposite trend of Nintendo and their partners, Sony tech-demos are run on high performance hardware to simulate what Sony believes their system can do while Nintendo's tech demos are early versions of a game running on an incomplete engine.