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Barkley said:
Either the Neo and Scorpio will have very similair specs or the Neo will be substantially cheaper. I'd wager that when the Neo is finally released it won't have the specs leaked a few months ago.

Then MS will just go back to their drawing board and bump their spec.

I think MS has realized they cannot be effective with weaker hardware, they are more reliant on third party games than Sony is and that whole thing doesn't work if they have worse hardware. 

Even the 360 had better ports in a lot of key games than the PS3 because of a better hardware design. XBox obviously was better than the PS2. 

I don't think MS will allow themselves to be underpowered ever again. They made that mistake this gen, Scorpio is basically the "apology" for that they said it over and over again in the unveil video.