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I don't think the first option makes sense.

You say releasing the next console in 2017 or 2018 is early, when in reality It's actually normal for a Nintendo console (And Sony with the exception of the PS3) Plus, I doubt the Xbox One is going to last as long as the PS4 since 360 is going to continue outpacing Xbox One, giving the possibility of Microsoft releasing their next console in 2017/2018 like Nintendo.

2nd one is great though.