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Just came across this article. Summary:

Both MS and Sony thought they could shrink the current die like with their previous consoles, save costs and be more profitable. However the process itself wasn't as cheap as they it would be and would cost hundreds of millions. The result was Sony going with more powerful set up. 

 

 

http://vrworld.com/2016/05/11/amd-confirms-sony-playstation-neo-based-zen-polaris/

 

Now if Sony thinks paying hundreds of millions is not worth it, does that mean we could expect MS to do the same?