Yes they do, it's not like they're going to be helping their own cause by torpedoing the videogame market. What's the point of ****ing up the market you're trying to sell in?
In any case, I don't feel people will buy the next Xbox en masse possibly the PS too because ultimately all they are doing is making inferior PCs.
Like really that's basically PS3 and Xbox 360 were upon release, RELEASE. Honestly I hope they have something special brewing because I don't want to see the console market fade away, if they continue this trend they're just going to make consoles redundant.
Also don't start buy saying 360 is not an inferior PC, because that's exactly what it is. Thankfully it has a console exclusive or two, but basically after plugging my 360 controller into my laptop I have a 360 that can actually handle 1080p native and play games with more impressive graphical effects.
It also does everything a pc does, which a console doesn't.
I used to hate people who would be all PC > console because to me that didn't hold water considering that consoles had pretty much most of the big titles as exclusives, had better controllers (keyboard/mouse not being counted as controller), and basically offered a unique experience that was rather incomparable.
This is no longer the case and so I am sad.
I suppose Nintendo is an exception to this considering all its exclusive and its ****balls weird control schemes but that can have its drawbacks, although I'm not really part of the Nintendo y u turn ur backs on us bandwagon.
I do hope Sony fails next generation though, they are the only company I honestly dislike. I like them in other fields of electronics, but not in videogames. :/
Edit: Wow that was a very long ramble.