A $500 console is not going to fare well right now. Some people do care aout the graphical capabilities of a console but they care more about their wallets. The main reason why the Wii U is not selling is because of its price and cheaper alternatives. I'm also a bit worried about development costs if we do see a gigantic graphical leap. I know some will argue that it's mostly marketing that is taking up most of the costs, but I do know that publishers sure as hell will not change that. 

The PS3 and 360 are on their last legs and they will have more valuable games walking out of this gen, so yes the core will still value them from a quarterly perspective and the late adopter will as well. Whether its about graphics or not is really and truly up to the eyes of the beholder and realizing its lasting value. Sony and Microsoft know that their next consoles will have an uphill battle when it comes to price because they are following the third parties desires to have more powerful tech to change the way we play and the vastness of the worlds we'll exist in.

Microsoft as far internal game development value needs to bow out desperately and Sony does as well to make sure their marketshare grows (because of course Microsoft wants Sonys marketshare). Their consoles will realistically be around $400 to $500 and yes, there still is a market to buy these products. Remember the consoles serve more than just a gaming purpose but also a multimedia purpose. Lets see what they innovate on this next gen front to not only get the core but the masses to believe.

You could be hardcore for one company though.

It goes both ways.  Nintendo's been around far longer than the other manufacturers on the market, though, so you could say if you're a hardcore Nintendo fan then you're a "true" hardcore gamer. ;)

They've out-lasted Sega, Atari Jaguar, Toshiba, Bandai WonderSwan, Neo Geo, and they're currently going more than toe-to-toe with Sony and Microsoft.  Pretty amazing they've lasted this long.

bolded the keyword.  they publish a game, as in one, uno, less than two. 

hardcore gamers buy a lot of games, like 15 or more a year.  not one a generation, not even just one a year.  so nintendo,.. not really catering to the core.  not when they miss out on GTA, bioshock, crysis 3, dark souls 2, dead space 3, watch dogs, metal gear, south park, and all those other games with a red X just this year...  oh, and let's not forget nintendo leaving out damn obvious OS features like cross game chat and a unified trophy system.

you're being foolish nintendo fan if you think nintedo has put any substance into courting the core.  so yeah, i agree with you... nintendo should go back to courting the casual exclusively.  i think it will still put them on the road to obsurity as that audience is even harder to please and just as likey to dimiss nintendo ...but at least nintendo has a chance.  but you are absolutly right about nintendo lacking the talent to make games or a system the core wants.

but don't try pull any this whiny "oh its everyone else's fault" BS.    the core are very demanding customers and nintendo's "let's the to bare minimum to get by" approach will not work.

The problem I have with Microsoft and Sony releasing super powerful consoles is that it will only benefit the big third party developers. Small developers are important too because they can bring new ideas and take risks. What good is it having the power to make a developers "dream game" when the publisher rejects is because it's too risky.

You could be hardcore for one company though.

It goes both ways.  Nintendo's been around far longer than the other manufacturers on the market, though, so you could say if you're a hardcore Nintendo fan then you're a "true" hardcore gamer. ;)

They've out-lasted Sega, Atari Jaguar, Toshiba, Bandai WonderSwan, Neo Geo, and they're currently going more than toe-to-toe with Sony and Microsoft.  Pretty amazing they've lasted this long.