Sony was the one that was suppose to anounce a new Console, from PS4 1.84 Teraflops to 4.2.  

But what happened is that Microsoft anunce the awesome Scorpio with 6 Tf and 320 GB/s of bandwith.

Now, what sony can do about that. 

Same as microsoft did with the One. Overclock it to close some of the gap.

Discard de design and go for a more powerfull CPU?

Anyway. If PS4 with 1.84 was just enough for full HD at 30 fps. And Scorpio will be 6 Tf for 4K (4 times full HD and 1.5 x 4 is 6.) So that means just what the One does for full HD, Scorpio will do for 4k at 30 fps. Neo will be significantly worse for 4k if it keeps 4.2 Teraflops, It only be able to run 2K AAA games and scalling or shit at 4k compared to native 30 fps 4k Scorpio. I wonder what sony will decide now. I love sony, but I guess Microsoft got serious and I respect that. Spencer is doing a great job.   

I'm positive that's what they're going to do...

It all depends how far through the process they are, it will hit a point where it's simply not practical or financially possible to do it. To be honest I think they're to far gone to be able to turn around and my guess would be that they probably wishing they had done the same and made it as powerful. However I doubt it will change the current way they consoles are selling which is what Sony and Microsoft really care about.

Either the Neo and Scorpio will have very similair specs or the Neo will be substantially cheaper. I'd wager that when the Neo is finally released it won't have the specs leaked a few months ago.

I'm not sure why people think specs have to be finalised such a long time in advance, a year and a half is plenty of time to make substantial hardware changes. Hell there were developers at the Playstation 4 reveal event in february 2013 that were surprised that Sony announced the console was going to have 8gb of ram and not the original 4gb, that was much much closer to launch.

Even assuming a Holiday 2017 launch for Neo that's probably almost as much time as they've spent on it from the beginning of the project.

Then MS will just go back to their drawing board and bump their spec.

I think MS has realized they cannot be effective with weaker hardware, they are more reliant on third party games than Sony is and that whole thing doesn't work if they have worse hardware. 

Even the 360 had better ports in a lot of key games than the PS3 because of a better hardware design. XBox obviously was better than the PS2. 

I don't think MS will allow themselves to be underpowered ever again. They made that mistake this gen, Scorpio is basically the "apology" for that they said it over and over again in the unveil video. 

Sony can easily overclock the MHz of the APU and increase the ram to over 8 Gigs.

The Scorpio wont hit 4K, the benchmarks from the Radeon 480 only hits 4K 30fps if you have a very strong Intel CPU not with an APU.

I think it would be better having the Neo 1 year ealier than Xbox Scorpio and getting a bigger software and update advatantage, i think for most people it should be obvious that we will go irretive consoles from here on out with upgrades and BC 

I don't think so. I think a more moderately priced Neo is the way to go.

Here's why: there's a big problem with 4k TVs moving forward. While the TVs themselves have approached a reasonable price, internet within the US is not good enough to stream 4K for the most part.

http://4k.com/news/research-shows-just-21-of-us-homes-have-4k-capable-internet-access-9744/

The price of consumer electronics always drops, but getting telecom companies to not be horrible is an entirely different problem.

It's possible depending on their current ps4 contract deals and what they were planning in regards to running two or one models at the same time. I don't get the push for 4k anyway most people set don't own a proper HD tv.

No. The Scorpio is over a year away and I doubt that'll threaten Sony sales. I mean, release Neo this year and you'll have the market exclusively for a year.

RAM is easy to increase. Replacing a CPU or GPU is a no-go close to release. If it is releasing in 2017, the biggest change they can do is to activate ROPs or other parts that they may have disabled to increase yelds or overclock it slightly.