If rumors are to be believed, the next PlayStation may be considerably more powerful that the next Xbox. The buzz came out from the CES 2013 where developer sources told that the next PlayStation, codenamed Orbis, will have a run-capability of 1.84 teraflops, and the next Xbox, codenamed Durango, will be able to achieve 1.23 teraflops.

Though most of the buzz comes from the off-the-record discussions that few unnamed developers had at the event, even if this is true, these numbers mean PlayStation 4 will have a 50% raw, computational power advantage over Xbox 720. And, both machines are supposed to read 100GB Blu-ray discs. Besides, there are strong indications that both Microsoft and Sony will run their own events anytime soon to announce their new hardware.

Again, if the rumors are true, it will create a competitive position for Microsoft. Apart from the hardware, it is the price that will be again a point of competition between the two companies. As the consumer electronics marketplace is already filled with desirable and affordable gadgets, the Xbox and PS4 machines will need to aim as low as possible. Why pricing is an important factor is because these devices are close to having PC components, and that’s why people may compare the systems directly against gaming PCs.

Xbox is a big thing for Microsoft, especially its plan of expanding beyond the realm of personal computers relies heavily on the gaming console which has become a full-blown home entertainment system. The company is also leveraging Windows 8 apps to transform the Xbox 720. In fact, Xbox will be geared to utilize Azure in a major way. It could be in the form of streaming app delivery to your Xbox, games on demand, or as we have been suggesting, a completely cloud-based Xbox gaming platform.

As latest development, Microsoft’s proprietary virtual currency system, Microsoft Points, will be phased out by the end of the year. On the other hand, next-gen Xbox 720 will be six-times as powerful as its ancestor by having a powerful video card. So for now, we’ll keep a track of all developments (and rumors, of course) about the upcoming release and keep you informed of all!