It doesn't need to be ultra powerful to be the most powerful. It's unlikely they're going to make an absolute powerhouse of a console, but will it be stronger than Wii U and 720? Probably. Sony will be last to launch again and they are going to take advantage of that by having hardware that's more powerful than competitors, even if only by a small amount. It's hard not to sell consoles at a loss these days, with how powerful the hardware is and with all the multimedia functions that they end up having. The 3DS is being sold at a loss, and the Wii U will be too, so Sony won't exactly be massively behind by selling Vita and PS4 at a loss too.
It is being sold at a loss?