Anyways, I just wanted to say that this arms race for the most powerful console would be a stupid economical decision. People will buy the consoles for the games regardless of RAM and CPU power. If the console is only medium-powerful (maybe a tad bit more powerful than the Wii U), then it would allow Microsoft and Sony to launch their consoles at an attractive price point for the universal market rather than die hard fans. And most importantly - it would allow both consoles to generate a profit or at least break even; this is especially important in Sony's case.
Case-in-point: PlayStation, PlayStation 2, Nintendo DS, Wii.
The PlayStation Vita is more powerful than the Nintendo 3DS and the iPhone 4 (competitor when Vita was first announced). Yet, it hasn't captured the minds and hearts of the mass market despite having extremely attractive hardware.
I recall a quote from Reggie at E3 2010, "Technology is only a tool... the thing that does matter is the experience." And that certainly seems to be the case here. Just wow me in another way other than "OMGZ 8 GB RAMZ" with software to support it and I'll be there Day One.