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Actually PS4 Neo wasn't that bad.

Sony's initial message was that Neo was only going to be an improved PS4 that has all the games shared to older PS4s. No exclusives for Neo etc. Gaming still in native 1080 but with the addition of 4k for videos.

Now they're seemingly going toe to toe with Microsoft's hilarious circus. Sony really doesn't have to do this. Just let MS shoot themselves in the foot because they're cannibalizing on their own SKUs.