It is time for my CYQ4'12 predictions: The, "Lower your exceptions... ok, good, now a little lower... no, I mean really low" Edition.
This edition will be looking at the recent Jaguar and AMD GPU rumors.
CPU
Reasonable, "We should not ask for too much" CPU: 8 x Jaguar with AVX.
Disappointed Edition: 1 x 4 Jaguar
GPU
Reasonable, "We should not ask for too much" GPU: 8xxx revision Pitcarn-class. 20 CUs (1280 stream processors), 80 TMUs, 32ROPs, in the 800-1000MHz range (TDP constrained).
Disappointed Edition: 7xxx derived, neutered edition: 18 CUs, 50 TMUs, 8 ROPs, 750MHz.
Memory
Reasonable, "We should not ask for too much" Memory: High bandwidth 80MB full read/write memory pool and 8GB of main system memory // or 4GB of GDDR5 (10 year console, etc).
Disappointed Edition: 64MB of Xenos style eDRAM (frame buffer only writable by ROPs) and 4GB of slow system memory // or 2GB of GDDR5. Oh and the OS is going to take 500MB and suck up 1 CPU core. All the time.
Price
Reasonable, "We should not ask for too much" Price: $299. There has to be a tradeoff to the cheaper components, right? Silicon footprint is probably going down a lot and the longer generation has allowed technology to play out with lower risks. WiiU is $299-$349 and the PS3 is $199 and 360 4GB infrequently $149. $349 with a good pack in game seems about top end for the above hardware.
Disappointed Edition: $399--and more if you want a HDD of any legitimate size. Supply-and-Demand and people will be lining up for these things, period. Watch the slew of $199 "on contract" deals come flying around, too ($20/mo). Toss in online fees going up (hey, but we are going to throw in more crap you don't want on a gaming console--and by paying we will give you access to stuff like Netflix and Hulu which are free on set top boxes) and AAA games going to $70 and "budget" games coming in at $50.
Marker Solidarity and User Friendliness
Reasonable, "We should not ask for too much" A standard platform: Yeah, things like motion controls, cameras, controllers, hardware configurations, etc will all be standard at launch, every unit, for the first couple years. You can play any game with the unit you buy. The unit will have a snappy interface that always works and updates seamlessly.
Disappointed Edition: You HDD is too small, you don't have a camera--and if you buy one no good games will use it in a good way, you lack 2x magic wands, and your OS is 5 minutes old so please wait 50 minutes while we update. Oh, and the unit is locked down so tight instead of being a media hub it will inform you of all sorts of violations of the DRM because you tried to play you movie on two different players--you need to pay $10 for that and it is keyed to this unit and expires in 30 days. Which doesn't matter because the dashboard is so slow it will expire before you could even navigate to it so who cares.