I think this will have a chilling effect on consoles, and in particular for Xbox One/Scorpio. It's not all bad for Microsoft though. I just helped a friend upgrade his PC after he saw the E3 Microsoft conference. He had a standard Dell tower with an i3-3770 and onboard Intel graphics (8GB DDR3-1600, 250GB SSD, 1TB HDD). We put in an Nvidia 970 OC edition and clocked it beyond 980 performance for less than $300, and he sold his launch X1 and 19 games for $300. (with kinect, headset, and extra controller). Now he won't have to pay for XBL, can still play all the upcoming Xbox games, and gets a better performance path than Scorpio will offer in 18 months.
By the time Scorpio comes out we will be on the Nvidia 1100 series, in which case a 1160 should be slightly better than current 1070 cards for around $200ish. AMD's Vega and Polaris refreshes should also be available offering compelling value.
Long story short, by going to iterative consoles it starts to make sense to just dump the console cycle and go to PC unless you love Sony exclusives. I respect Sony and what they've done with PS4, but Neo is meh to me. I believe they should have just refreshed it silently for 4K/Bluray video and slotted in for the same price. After all the new APU is certainly cheaper than the old one at launch.
I should preface that by saying that of course PC isn't for everyone. For average consumers it may seem scary or confusing, and prebuilt gaming systems are often crappy or expensive or both, lol. But for someone that already has a halfway respectable desktop, adding a GPU is cake (and less $$ than a new console unless you go bananas).
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