This whole misconception of Sony "dropping the ball" has been overstated. The biggest advantage that Microsoft had was when Sony announced the PS4 Pro was Sony revealing all of its cards because it was a public announcement. Now that Microsoft knows the spec of the PS4 Pro, there was little to no guess work on how to counter what the Pro had to offer in terms of spec. Also, releasing the X a year later allowed Microsoft more time to develop the X while components normally drop in price. This by no means is implying that the X is a bad console. Info and time were factors Microsoft used in its favor. And after what Sony went through with the $500/$600 fiasco with the PS3, launching the PS4 Pro at $400 was the right decision.
And about the 4K Blu-Ray playback, it's pretty much a non-factor at this point. There have been reports to the playback being shotty at best. Microsoft even officially announced they they were looking into it.
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