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Landguy said:

I agree with some of your points, but there is some fault in it.  

IF the Scorpio comes out at $399, that is not that premium of price in 2017.  The PS4 sold 30+ million consoles at that price or more.  Those aren't just "early adopters".  Also, $399 in 2017 really is like $300 back in 2006.  So, the common theory of needing to hit $250 or less for mainstream has changed.  People are paying $700+ for cellphones EVERY YEAR. 

I do agree that MS has an uphill battle for the common theory of "my friend has it, so I will get that too".  But, we live in "buzzworthy" society.  The PS4 is now 4 years old and becoming really old news.  Whether it make financial sense or not, people like to move on to the newer shinier thing.  MS can only hope that their new Scorpio is shiny enough to take attention away from the still has some shine PS4/PS4pro...

You know, there is a reason why I never mentioned price, and it's because at this point it would be nothing but speculation.
While a lower price would undoubtedly benefit ANY system, I made my point on the basis of it being a "premium product" the way Microsoft have marketed it to this point. 
Even at a $400 price point, it would still cost significantly more than its 1080p counterpart, meaning my point about 4K and cheaper harsdware still stands.

I can't see the future, but neither can you. Trying to disagree on the basis of an assumption you made isn't really much of a comeback. 

As a quick sidenote: the "people buy phones" argument is quite dim. The fact is that people have different priorities.
The fact I could buy, say, a car, doesn't mean I could have just spent all that money on games, because I NEED a car. The same holds true for phones, kitchen appliances, furniture, books, uni fees etc.
Plus, people buying a new phone every year aren't the mainstream of the phone industry. This is ignoring the fact that it doesn't operate on the same principles as the gaming industry.

Finally, the buzzworthy society point is, well, a bit weak.
"People be buying the new shiny thing" doesn't really apply to a mainstream audience. Especially if it doesn't make financial sense.
I honestly have no idea what you would consider to be a mainstream audience, since in your opinion they are just people spending inordinate amounts of cash that they may or may not have on anything that is new.  This in spite of owning a given console already, owning games on said console or your friends playing there. Oh, but the shine fades... 
This even applies to the base XBox One, whose existence you seem intent on ignoring!

tl;dr: I think that a "premium product" for "premium consumers" isn't being marketed to a mainstream audience.