Their new plan kind of kills the problem of " If your "piece of plastic" doesn't sell well then that console dies and no more games come to it"
They are ending the generation "reboot", that reboot happening every five/6 years, and forces you to sell all your old games and consoles because they are now useless.
The problem with that, and why almost every new generation, a new company is leading the market , is that when every manufacturers tells you to throw away everything you bought during the last 6 years and start again from scratch with a new one, you can tell yourself "well, I might as well jump ship and buy another brand this time".
The alternative Microsoft is bringing with scorpio and the next Xbox consoles, is a way of retaining users. They tell you : " you can keep everything, you don't even have to buy a scorpio, we'll make sure scorpio games will be compatible with your old Xbox One. You can upgrade whenever you want for a new model, but nobody is forcing you".
They do all that, because the real money isn't in selling hardware, because those things are sold with an awful profit margin, ranging from tight to "at a loss", the real money is in games, digital content, Gold memberships, and so on.
So their new plan is to make sure you don't leave the Xbox/windows ecosystem, for Phil Spencer, the console war and the "piece of plastic" VS "piece of plastic" is kind of irrelevant.
Because, if when the PS5 comes out, Sony says "you have to sell all your stuffs to buy new stuffs", basically Sony and their costumers are again back to square one. Microsoft meanwhile, with the scorpio or the next model, will just grow from the user base they started with the Xbox One..