The question is: will the next gen offer enough above the current gen? Current era games are usually limited by their budgets not the hardware. If the PS5 fulfils the next-gen thrill in the same way PS2->PS3 did then Microsoft is doing the wrong thing.

If the result of the next gen is that games look a little better and load a little faster but basically play the same, then Microsoft's approach of being "game collection centric" will be correct.