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vivster said:

They should've just talked to each other to both bring a $600 console.

This is actually a good example of competition hurting consumers. Both were so bent on beating the competitor's price that they started to cut corners. I mean we're talking about a long term investment here. If you cut corners from the beginning you will be stuck with it for years.

This is the first generation where a stop gap hardware update seems plausible, again I think its something that the market is ready for. Maybe we'll see one of the two release a new spec PS4/X1 around 2016-17.