Aaron Greenberg talking to MCV.

The games and accessories you own for Xbox One or Xbox One S will work on Scorpio. For previous console transitions, like Xbox 360 to Xbox One, the games and controllers you had for the older machine were rendered basically useless on the new console. However, backwards compatibility support on Xbox One helped with some of this. Scorpio goes even further and "wipes out" the idea of a console generation andeases the "disruptive" nature of moving to a new platform, according to Microsoft.

Talking about how Scorpio and Neo impacting console sales they will market the Xbox One S 'aggresively' to combat this.

In fact, GameStoprecently said the announcement of Scorpio and Sony's Neo negatively impacted console sales. Greenberg didn't exactly give an answer to this question, however, instead saying Microsoft's focus will be on being "very, very aggressive" when it comes to marketing the Xbox One S.

Microsoft will be "really focused on delivering on value with bundles and what you get for the price," he said.

Source - http://www.gamespot.com/articles/xbox-boss-talks-scorpio-cross-play-with-ps4/1100-6443051/

It's funny that he especially mentions controllers. It is such a shame that for new hardware, you also had to buy new controllers. Especially if you keep in mind that controllers are USB since a long time now.
But yes, this is also a step into the PC direction. You are not free to choose the controller you want to play with but you should not be forced to buy a new controller. That doesn't mean you can have access to all features a new controller may have, though.

I like the idea of games and accessories staying compatible but upgrades still being available.  I'd think this would make sim racer people very happy.  I couldn't imagine buying new wheels.  

No need to tell PC gamers, we knew the advantage and believed in it long ago. I think it's the right direction for the industry as a whole.

Well, that can be argued. The companies made a lot of money with accessories in the past, the "cut loose"-behavior also made a lot of money in general. Look how you have to pay many times for games you already own on WiiU or 3ds or PS2 games on PS4 (yes, they have trophies now, but still...).

MS is heading in this direction but I don't see that Sony and Nintendo are following because they make money of the fact that people chose their ecosystem and games and are "tied" to that. It's funny that MS is going this route, though, but we also know why they are doing it.

On the agressiveness he is right.  I've already seen where you could buy the 2tb xbox one s for $399 with 4 free games.  Whether it's retailer incentives or direct from MS they seem like they will get pretty strong on deals for this new launch.  It should be an interesting holidays for some really good deals.

That part right there. I think he knows something. PS4s $249 confirmed!!!

As for the rest, i agree. Its the best direction console gaming could go. I also think some dont really see what the benefits of something like this can be.

Consoles have always been in between two hard places. You can't make an all powerful box because you can't be too expensive. If you are too expensive sales stall. 

But right now, if Sony or MS wanted they could make a $500-$600 premium console that was ridiculously powerful and rest in the comfort of knowing that all that really needs to sell are the cheaper versions of those same consoles. Then when they can get the prices down people have an option to upgrade. 

Taking out the need for a controller because the existing works would also help probably.

I don't think a console should ever be sold without a controller. Especially when you consider its one of the chespest things for them to make.

To ask for that would be to assume that everyone buying a console either had their predecessor before? So say I had a PS3 and this gen I wanted to switch to XB1.... having to buy the box then go out and buy a controller would just be another excuse I have to stick with Sony and just buy a PS4. 

A lack of generations prevents a clean break from the previous iteration of hardware. The strength of consoles had always been a unified platform that developers could maximize. In addition, it made it clear to consumers when software was compatible with a platform.

I don't see this change as a good thing. New hardware is going to be limited by software being required to run on older hardware. Which defeats the purpose of having improved hardware. Consoles are becoming too much like PCs and forgetting what made the console model a success.