How do you propose they do that? To produce better hardware that is also cheaper, they would have to significantly delay the PS4 unless they are planning on taking a bigger hit on hardware.
Also there's little chance either company really knows what the other is doing, so how would they know how much to spend on hardware?
I have repeatedly said I don't expect any big difference in performance, but I recall you being very willing to believe the PS4 will be more powerful than the 720 in the PS4/Jeff Rigby thread. So why is the opposite so lol-worthy to you?
I can care less if there is a noticeable difference in performance between the two platforms, I'll just get the more powerful of the two at launch. However IF the xbox is more powerful than the PS4, I can't wait to see your reaction.
That was all marketing PR bull with no basis on any facts or knowledge on their competitors. That's no different than the person at Sony saying they don't want to launch last but it's still a possibility.