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czecherychestnut said:
The cost reduction enabled by the availability of 16nm lithography could be used in two ways, either shrink the existing design and pass the savings onto the consumer (PS4 slim model), or keep the price the same and add value (XB1 Slim and PS4 Neo).

Sony has to make pricing room for the Neo, if Neo is to be $399 (obvious price point) then PS4 can't be $349. So they've used 16nm to cut costs of the PS4 Slim, and add features (power) to the PS4 Neo. I wouldn't be surprised to see PS4 Slim at $249 and Neo at $399.

MS isn't anywhere near ready to release Scorpio, so they've bet on enticing existing users to upgrade by using the cost reduction to add value to the XB1 Slim by adding 4K Blu-ray support. Overall, both are valid strategies that will help differentiate the PS4 and XB1 from each other and potentially improve the sales of both. PS4 Slim becomes the cheap HD console, XB1 Slim becomes the media console and PS4 Neo becomes the power console until Scorpio arrives late next year.

Yes they both sound like valid strategies. But only if MS exists in a vacuum. 

The route mS took, Add value to a cost reduced XB1 and sell it at $299 has its own issues. 

So I want a 4k console. Something that allows me play games, watch contemt and Blu-rays all in 4k and HDR. I can either pay $299 and at least get some of that. The movies and HDR part or I can pay $100 extra and get all of it.  

So I don't want a 4k console. I don't have a 4k tv nor am I planning on getting one anytime soon. I just wanna play my games in good ol fashioned 1080p. The best and cheapest console to do that just happens to be the PS4. It's either hat or I pay more for things I don't even need or won't use. 

I really think MS should have gone the full on cost reduction route.  Undercut the hell out of the PS4 in price. come in at $199 or even $169. That would have been a way more competitive approach than what they are doing now.