Yeah but I think the doubling of the ram has to do with non graphics related stuff Sony probably wanted to compete with the features and OS stuff MS wants. 4gb just for games is enough to feed the Gpu and Cpu. The other 4gb is probably for certain OS features and a smooth and quick overall experience plus headroom for future projects, more flexibility and as a gift for developers . This was clearly a response to the 8gb from MS. What the "spies" found out was that the Xbox had 8gb. 

the rumoured specs was right for wii u and ps4. with the 360 reveal a little over a month away, i think the rumoured specs for it are correct. which would mean PS4 has more power but its probably the same level like ps3/360. i dont think we'll see much difference in games. ps4 exclusives on the other hand will be graphics beasts!

I think 'dwarf' implies dominate. When I think dwarf I think Xbox to PS2. With that established, no, I do not think it will. However, based on the rumors it does appear to have the technical edge (or edges if u will). The only system that is getting dwarfed this gen is the Wii U, but it seems like the PS4 > Next Xbox.

So far, the leaked specs for the PS4 have turned out to be true. So I also expect the leaked specs of the NextBox to end up being true. In that case, the PS4 is indeed a little more powerful.

But Microsoft could adjust parts of those specs until they're ready to reveal the actual console. But at this point in time, I don't think they have that much room to change much, if they plan to release the console this year.

The rumoured specs should be right, just like they were for the PS4. With no real differences in the architecture, the PS4 Multiplatts will easily look better than their Xbox Counterparts. There is no cell anymore, just x86 all the way and even the exact same CPU. The GPUs are also very similar, the one in the PS4 is just somewhat stronger. Devs won't have to really optimize a game for the PS4, they just push the Graphics up, like you would do it on a stronger PC. The faster RAM should also result in some noticeable differences.

That said, the first party Titles on the PS4 will look dramatically better than any game on the Xbox 3. Not only is there more power in the system, the devs from Sonys studios are also very talented. I expect Naughty Dog to present something better than Deep Down at this next E3 - in real time. With the rumoured specs, Microsoft just doesn't stand a chance technically. But you know, you don't need the strongest Hardware for success, we've seen that often enough. Microsoft seems to really go for the Entertainment thingy, games are just one if many options, while the PS4 is built around games.

Of course Microsoft could change the specs of the console at last minute to compete with the PS4. But changing the GPU and swapping DDR3 for GDDR5 would result in a major delay for the console. It would give the PS4 a quite comfortable headstart as you just can't build a console over night. It takes time. If you don't take that time, you end up in a RROD Desaster. And I'm sure Microsoft doesn't want that to happen again.

The only thing that will dwarf the Xbox 3 are PS4 Exclusives. Multi Plattform Titles should look a little bit better, but you won't really miss anything if you're playing the same game on XBox 3. That's what I'm expecting, at least.

If the rumored specs are true, PS4 is just a little bit more powerful than the XB3. It is not going to be very noticeable to the main stream audience. I think Microsoft's best bet is to try and undercut Sony price wise, and with what we are seeing they should be able to do that. I expect PS4 to be $400 - $500 and XB3 to be $300 - $400. I think that will give them a bigger advantage than trying to match Sony hardware wise.

The current rumors would basically make this a PS2 vs Xbox like scenario. We all saw what happened there, and I would imagine that is what MS will be shooting for. This is why I think MS is just going to keep things just the way they are.

No they'll be mostly the same. I do think it will be slightly better and maybe third parties can take advantage this time because of the basic architecture and make the framerate or effects a little better, but I think we'll only notice the difference in loading times, boot up/resuming from sleep, and app switching (hoping for some instantaneous store access. The first party titles from Sony will look amazing and I can say that with confidence because KZ2, Uncharted 3, and God of War 3 all are running on VERY dated and hard to use hardware yet they look INCREDIBLE even when I play them today. Just imagine what ND can do with 8gb of GDDR5!

I don't think they need 4gb of GDDR5 RAM for the OS.  If they were putting extra in there for the OS they would make it DDR3 since menus and apps don't take that much.   They said it's unified unlike PS3 so I think it's really for devs to go wild.  Imagine what ND and SSM can do with that if they did GoW3 and U3 with 256mb!

Precicely.

The overall system specs of PS4 are superior to the rumored Xbox720.

The GPU is superior slightly (18 CUs compared to 16 CUs) and the RAM is superior (8GB GDDR5 vs 8GB DDR3 + 32MB ESRAM). The CPU is the same.

The biggest disparity in performance will be cause by the bandwidth difference because of the GDDR5 being faster than DDR3. Both of these designs are based off of AMD APUs and we know for a fact that these APUs love more bandwidth since both the CPU and GPU part of the core use the same RAM. So the faster the RAM is the better the APU performs as seen in the following link:

http://www.tomshardware.com/reviews/memory-bandwidth-scaling-trinity,3419-4.html

Microsoft's console migh be cheaper because of this configuration because it seems like they did this as a cost saving measure.