Well, being Weaker than Ps3 next generation will be a sin, much like beaing weaker than Ps2 this generation, and Psx last generation. Sony is the only company right now that I can see getting away with weak technology while getting the most units sold.
I dunno though, we can peek into the past to see how graphics effect sales... look at N64 compared to GCN. N64 was leaps ahead of Psx, and it sold well because of that... now GCN is a few steps ahead of Ps2, and it sales like crap... what's next? It falls a step behind and it can only get worse.
As far as M$, I think they will have enough quality titles to reverse it's power issues... Third parties trust M$ for some weird reason, and MS has better first party support than Sony.
The thing is, the curve for graphics will not be as huge as it has been in the past no matter what happens. This generation the weakest console (Ps2) is still damn close to reality... the gap between games looking like real movies is getting smaller and smaller. I expect the next consoles to have a longer shelf life then this generation for that reason.
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"I have been saying this for some time, but customers are not interested in grand games with higher-quality graphics and sound and epic stories,"-Hiroshi Yamauchi
I AM TheGame, and I am THAT DAMN GOOD
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