LOL, this is so true. Microsoft got a powerful hardware on the mid gen refresh but it's actually will hit back them as soon next gen coming. If Microsoft want they can just wait for 2021 or 2022, but they need to have early start or at least compete at the same timeframe with PS5 to get the hype. Sony in the other hand like you said is actually more relax. Even they can just said "we are happy PS5 is 2X the power of Pro and sell it with 8 teraflop ", even though 8 teraflop Navi is like 12 to 13 teraflop Vega/GCN. Microsoft will be difficult to reach 12 teraflop with Navi 7nm (it need at least 7 nm EUV (7+) small design that will not available until 2020 and 2021 for release. So Microsoft will be hard to sell it for casual or normal consumer that dont understand PC spec or not following PC tech.
I'd imagine they would both stick with 7nm since the yields by next year should be acceptable in time for production for the holidays. If one company was going to shoot for 7nm+ I think it would be MS. They are likely to sell less consoles in general, especially if they come out with a higher performing more expensive console, so they could deal with lower yields and not worry as much about cost, even if it meant absorbing a little more early on. This would be what MS would need to guarantee they end up with the strongest console head to head next holiday, if both are looking to sell for around $499. Scarlett either wouldn't be all that much more powerful, or would be, though more heavily subsidized. Now if PS5 was around 8TF, and Scarlett ended up around 12TF, then you can almost bet that PS will keep PS5 $100 cheaper than Scarlett, so is that worth it for MS in terms of marketing? I would guess that MS would rather use 7nm and just make the cooling beefier and console larger if they need to instead, which should help it remain more cost competitive on the shelf.
If MS doesn't at least double the TF number for Scarlett it will look bad on them. If they don't focus on it, or use another indicator like Navi or how many CU's it has and not the TF, that's going to look even worse. I mean MS is already using terms like custom Scorpio Engine processor for XB1X, making sure not to mention Jaguar. PS can use whatever direct terminology for PS5 and it's not really going to matter for them, even if the TF count is lower than Scarlett. Pro was 42% less powerful on paper than XB1X and it really didn't impact them. New gen or not, with BC in the mix plus the PS4 brother's staying relevant and tied to PS5, marketing for Scarlett is going to be tough in terms of hardware.