It's not just about resolution.
Yes, it's always good to get better resolution, but the bottom line is that the PS4 is stronger, meaning that first party exclusives will have more power to push graphics even further than just resolution.

@UltimateMaster -

To an extent that was the case with the PS3, the CPU was miles ahead of its time compared to the xbox 360 and in many platform exclusives it really outshone the xbox, but in many multiplats it was a different story.

Yes graphics are important, but for example if you were to go play knights of the old republic today (released 2003) would you say its a bad game because the graphics are pretty awful compared to todays standards?

That game was a great game for reasons other than graphics.
There needs to be context, even today on phones, angry birds, candy crush, flappy bird etc. all are pretty low graphic games but millions enjoy them for the playability of them.

Im not fan of the xbox one, and I think the PS4 has been engineered in a much better way, but microsoft are software kings for a reason, they will optimise the GPU/CPU like DX12 will in 2015.
They can even optimise code for textures in the VRAM.

THe PS4 has more performance, but thats not to say the xbox one has hit its glass ceiling yet, maybe a massive leap forward can be found since the architecture of the Consoles are similar aside from the ram.
Hate the xbox one all you want but its still selling well - just not as well as the ps4.

@r1sh12
You are kinda right.
See, when the PS3 first came out, the drivers weren't properly to use the maximum capacity of the console. That's why when it was released, the Xbox 360 had an edge on multi-platforms.

Overtime, special techniques were used to take advantage of the design of the console with the multi-treating (sorry if I misspelled it) and first party games looked much better than it's Xbox 360 counterpart where the drivers were already well designed but couldn't use anything extra.

PlayStation decided not to go back the same route as the PS3 were it was a complex design.
Instead, they went back to a design that was more similar to the PS2. Originally, the PS4 wasn't supposed to get 8Gb of GDDR5 but rather 4Gb of it + 128Mb of eDRAM (The Wii U has 32Mb of it) which could have made performances up to 1000Gb/s. Which is far superior than anything the PC has to offer, however, they would have to use special techniques to get around to properly use it.

Who knows, maybe they will use it in the future as a side RAM. But by Sony's surprise was to learn that what developers wanted was an unified RAM structure. (Something not found in the Xbox One nor PC "has PCs uses DDR3 + GDDR5" but not quite as complex (as X1) as they are similar.)
Tough, it's not a deal breaker for 3rd parties as you can see they are still making games for the Xbox One (but not so much for the Wii U as it need to optimize it's drivers and they aren't helping developers like Sony did with the PS3)

People have to realize that the only reason why the PS3 was made so complex was to prevent hacking as much as possible. As it was rampant with mod chips during the PS2 era.

This time, they went with the most power for the best value for the consumer.

E3 will be biblical.

'Battle of the exclusives'

That's the best type of battle for gamers. Surely MS cannot adopt the same minimalistic approach they used last gen. All of the advantages they had last gen are gone. They'll have to fight with exclusives for the whole gen. Let's see if they have the stamina because they're competing against competitors that do.

Even parts though, its not necessary to replace even a single part every year. Maybe, MAYBE a new gpu every 2-4 years depending on what you go for, cpus/ram last longer. It hasnt really been necessary to upgrade anything annually since the athlon 64 days