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499 hardware optimized for its purpose at end of 2020 can provide an outstanding machine, specs wise. CPU would be the biggesti improvement.
If not focusing in native 4k, the games can be even more impressive not usng it (you get a 4k checkerborded (or even better solutions) with half of the processing power, native now seems a waste).

MS might go in the same route, a 500$ beafy console, but also has a second option, very cheap mini console or echo dot like (below 100$, including controller). Plays all Xbox games on the cloud(old, new, etc). With also versions for IoS, android and switch under some subscription.
And then I feel MS will never push many hardware to compete to Sony, but its services will generate more and more revenue than ever

And as for switch, in these 2 years we might see a revision. Id bet on a mini first, we are on the verge of pokemon gen 8 and animal crossing