Like I said before, what this new gen allows is for the developers to start integrating new procedural elements that the current gen of consoles isn't capable of. That is the stuff that will add plenty of awesome effects to new games without developers having to break the bank to make a game. Plus in Sony's case, the cloud stuff and increased focus on internet connectivity will allow them to slowly phase out physical copies of the games like the pc has to further reduce production costs.
This gen, more then any other gen in the past, is going to be all about saving money. This last generation for everyone but Nintendo was all about excess and spending far too much money on hardware and game development. That has to change or Sony + Msoft will be done with the console business.