Both consoles offer...nothing substantial other than Microsofts exclusivity tactics, which will likely depend on Sony not bothering with it, integrated Motion controls, Xbox finally having a bluray format and nice sparkly, probably pointless screens on the controllers (my opinion for now, may change).
With the demographics of young folk out of work recently, they just lost buyers before it even begins, then there is the casual aspect (and I suppose children fits in here more now than ever) not giving a damn and enjoying easy to use, simple games on tablet computers, which if you take the iPad mini cost of ~$329 it has to compete if it wants that crowd...of course not everyone goes for iPads, most Tablets are dirt cheap, which makes it even worse.
It really depends on marketing, games in the first few month or two and cost.
Marketing, I dont think either company will miss much of a step here, especially Microsoft.
Games, usual first party list and perhaps up-ported games (not really relevant if you already own the games anyway), doubt it will really make people scream with joy.
Cost, the deal breaker, if it is not desiring the casual market, there is a bit of wriggle room, but not much, anything over $400 is a no-no, which is why they have seemingly been hesitant with the design specs, if like Microsoft who seem hellbent on appealing to everyone everywhere, then they have a problem because not only do Casual gamers already have a better alternative, the core gamer will likely not enjoy this, especially if their games are changed/castrated for it.
On the game development side of things, how many developers died at the hands of overzealous publishers this generation?
It will only get worse, i imagine, I am waiting for Biowares dissection personally.
If i do get a console, it will likely be from Sony, Microsoft has been nothing but a pain in the ass since Ballmer became CEO, I don't plan on supporting that.
Plus Japan needs money.
