Back in 2006, Nvidia supported Sony's PS3 system with an advanced GPU which destroyed everything else on the market at the time. On March 17, it was announced that Nvidia has reportedly refused to work with Sony on the PS4 due to the low price they offered. Tony Tamasi, senior vice president at Nvidia, says the PS4 is easily outperformed by graphics cards from last year.
"If the PS4 ships in December as Sony indicated, it will only offer about half the performance of a GTX680 GPU which launched in March 2012" said Tamasi. He isn't a fan of console gaming due to them being underpowered and becoming obsolete too quickly. "What you get today in terms of performance is what you're stuck with five - 10 years down the road. PCs don't have these problems" Tamasi also stated. PCs can always be upgraded with more RAM and Graphics cards, while replacing the CPU may be not a good idea, the GPU can easily be replaced.
With a Sony, Microsoft or Nintendo console, they will remain underpowered and PCs will also be superior. Tamasi also stated that "if history predicts the future, then these next-generation consoles, while being more powerful than the current ones, will very quickly end up more than an order of magnitude behind the PC." Nintendo knows this rule and this is why they don't decide to go for more power. The Wii U, Nintendo's newest console, only has 2GB of RAM and an upgraded Wii processor. It's more powerful than the Xbox 360 and PS3, but Microsoft and Sony will end up releasing powerhouses and in 5 years, they will be obselete. Nintendo will have a console for gaming while Sony and Microsoft have old computers on the market.
Remember that when you buy a gaming console, don't focus on the specifications of the hardware. Instead, focus on software and innovation. If you're looking for realistic graphics and horsepower, buy a gaming PC for around $2,000. If you're looking for fun and entertaining gameplay for the family, buy a console.