You accuse people of not knowing about finance and business, and then go on talking about Xbox being able to give away consoles if they wish?  You may want to check out a mirror to see the person who is not in the know.  There's a reason the X is so expensive.

Xbox ≠ MS.  MS has its own priorities.  And it is obvious by the lack 1st party SW and 3rd party exclusives, as well as a decline in marketing deals, that Xbox is not as big of a priority for them.  They also have investors that they need to answer to.  If next gen they decide to give away consoles for free, or even a large discount, investors are not going to be happy.  There were quite a few of them who wanted them to pull out of the console biz at the beginning of this gen.  I imagine its going to be even more next gen if the PS5 gets a whole year on the market by itself.  I mean they are going to be launching against a console that at that point would probably have sold ~14M already, with no signs of stopping.

Also, it would be pathetic for MS to even attempt to use the X as competition against the PS5.  It can't even compete against the weaker Pro.  How is it going to compete against a PS5 that blows it out of the water, power-wise?  As for the XB2, it's going to have a problem with competing against the PS5.  Not only is PS a much larger brand WW, but there is really no chance of it being incredibly more powerful than the PS5 without also being more expensive.  The reason being, there is no way MS is going to let Sony release an entire year before them.  They will try to keep it to 6 months later, but most likely will try to launch at the exact same time.  Anything more would be suicide.  They also do not have a good structure built up to push out high quality exclusives like Sony does.  They are going to give it a decent push next gen, most likely using 3rd party exclusives, even it just timed, but Sony is going to be ready with true, high quality exclusives.

https://www.eurogamer.net/articles/2012-05-02-microsoft-to-launch-USD99-xbox-360-subsidised-by-monthly-subscription-report

The PS3 was cheaper than the PS4 when the latter launched, but that didn't stop the PS4 from selling spectacularly. In addition, the PS4 has been outselling the XB1 even when the latter has been cheaper. Your conclusion that the Xbox One X can sell more than the PS5 on the basis that the former is cheaper has multiple holes, as a result.

As I already stated in my response to you (in which you've apparently decided to glance over), a hypothetical situation where the PS5 gets a year headstart would allow Sony to grab a good chunk of the Xbox fanbase. Microsoft can release a more powerful console a year later, but if the consumers are satisfied enough with what the PS5 offers, that would end up hurting the potential revenue Microsoft can earn from hardware, software, and services. Also, your statements about power miss the point of why it was emphasized at the beginning of this gen. The reason why people made a big deal about the PS4 being more powerful than the XB1 was because the former was initially more powerful and less expensive.

And what if the PS5 starts stronger than the PS4? The PS4's launch library was not particularly great. Knack's MC was in the 50s and Killzone Shadowfall's MC was in the 70s. Considering that Sony's 1st party studios have found their groove, it's not out of the question that the PS5 may launch with a significantly better library. And then, we also have to take into account the possible backwards compatibility with PS4 games. That would provide an instant library for PS5 owners to start with and perhaps, even provide substantial enhancements like the PS4 Pro. It would also help publishers sell more copies of their games and not have to worry about them getting left behind like what we saw with Puppeteer. After two holiday seasons, the PS4 sold 18.5 million units. That would be quite a headstart for Sony if the PS5 gets a year headstart (which I strongly doubt will happen, btw. I think the PS5 and XB2 will release simultaneously).

It will launch head to head. Those of you who think that Sony will destroy them again need to look at your history. Look at the generation's starting from NES until now. How many times has the same company dominated twice? Just once. That's it. In all of gaming history, only one time has the same company dominated two times in a row in home consoles.

Things change. What happened in the eight generation is not automatically going to carry over. It COULD but the odds are against it. I fully expect Microsoft to take Sony on next generation with this in mind and not back down.

First of all I am well aware that PS4 is the best selling console in gaming history after the PS2. PS5 will have a hard time to match the amazing sales PS4 manage with Nintendo having recovered and Microsoft really stepping up their game and investment in gaming.  

It all depends on how long Sony wait to release PS5 .... I think we can agree that XB2 will either release simultaneously or after the PS5. 
The gap between release will depends entirely on when Sony release the next console. I don't think Microsoft will release a new consoles before Holiday 2020. If PS5 release in 2019 they will probably have a year advantage. But, the power advantage over Xbox one X won't be has significant. I don't think PS5 will come bundle with VR but if it does that might also increase its price.  Power is important in term of marketing but price even more so. The facts that Microsoft release a less powerful console at a higher price point just show how stupid Don Mattrick was has leader of the Xbox division. Sony should be forever grateful to him. Sadly for Sony, He's no longer around and Phil Spencer will give them a much bigger challenge. Microsoft has to really grow their worldwide presence before they will can ever Challenge Sony.... They will probably never take over Japan market unless Sony were to get out of the gaming business. But, if Microsoft can take back North America the numbers might get interesting for next gen. 

Can't compare the PS4 launch to PS5 .... The PS3 and Xbox 360 were stagnant and there wasn't mid gen release like we got with the Ps4 Pro and Xbox one X. The jump in power between Ps5 and Xbox one X won't be anywhere near what it was for Ps3 to Ps4. There simply no way the PS5 can do better then the PS4, Nintendo was failure with the WiiU, Microsoft was releasing a less powerfull machine for more $$$. When the PS5 launch they will have to compete against Nintendo, very cheap PS4 Pro/Xbox one X and what ever Microsoft is planning.

I wasn't questioning your awareness of the PS4's sales performance. I referenced the PS4's sales performance in spite of the PS3 (and also the 360) being cheaper as a counterpoint to your argument that the XB1X will sell better than the PS5 due to cheaper price. Arguing that the PS5 will struggle to match the PS4's sales performance because Nintendo has greatly recovered and Microsoft is stepping up their investment in gaming falls short. The PS4 is still selling very well in spite of Nintendo and Microsoft stepping up. In addition, I hinted that if Sony manages to retain all of its active users and PS+ subs, then the PS4 to PS5 transition will be much smoother than the PS3 to PS4 transition.

The power advantage over the XB1X will be significant even if the PS5 is released in 2019. The CPU will be far better than Jaguar in every shape and form. Ryzen runs circles around Jaguar in terms of energy efficiency, clock speed, IPC, and threads per core. Zen 2, which is the CPU architecture the PS5 will likely use, will be even better than Ryzen. GDDR6 will have far greater bandwidth than GDDR5 and the PS5 will also have more RAM than the XB1X. Lastly, the XB1X's GPU is based on the Polaris architecture (I think) while the PS5 will likely be using Navi, which is two GPU gens apart. You don't just look at the amount of teraflops and call it a day.

Why should Sony be forever be grateful Don Mattrick? You do realize that the PS4 still outsells the XB1 when the latter is cheaper. We have seen countless times where the XB1 is $50 cheaper than the PS4, but the PS4 still beats the XB1 in NPD. As for Phil Spencer, we're already 4.5 years into this generation, but Microsoft's 1st party software is greatly underwhelming. In addition, he's more focused on GAAS which emphasizes long-term revenue from subscriptions and microtransactions. There are several 3rd party publishers who develop multiplayer games and gain revenue through microtransactions. Sony gets a platform cut from their revenue while the company focuses on singleplayer story-focused games to push hardware sales and differentiate from the competition.

And yes, you can compare the PS4's launch to the PS5's. There will be differences in which I already named some of them in my previous comment, but that doesn't mean you can't compare them. You assert that the jump from the XB1X to PS5 won't be that great, but I already showed you where your reasoning falls short. You also assert that "there's simply no way the PS5 can do as well as the PS4", but you don't have much evidence to support that. Note that I never said that the PS5 will do as well as the PS4, but I suggested that there is a possibility that it can. One of the reasons I mentioned was backwards compatibility with PS4 games. Another reason I also mentioned was Sony's 1st party studios finding their rhythm which may allow the PS5 to launch with a substantially better library and we may not have to wait 3-4 years for the 1st party games to really pick up in quantity and quality.

Microsoft Xbox division under Don Mattrick was a mess....Don Mattrick manage to destroy most of the goodwill that Microsoft had built with Xbox 360. Don Mattrick failed to compete in Hardware, software and price with the Xb1.  XB1 division manage to turn a profit but can't compare ion terms of numbers with Sony world wide, they lost most of the progress they made with Xbox 360. 

Microsoft has dealt with hardware being under powered compare to PS4 and for the most part align their price to match Sony. PS4 will have the software dominance this entire generation and not much XB1X can do to fix this this generation. Software remain the most important issue they need to address if they really want to take on Sony. This will take time and more reason for Microsoft to delay the launch of XB2. 

When the PS4 launch the PS3 had been on the market for 7 years. Consoles gamers were ready to make the jump to new hardware. Sony and Microsoft have now change the game with mid-gen upgrade. From now till the release of the PS5, Some PS4 owners or new adopter will make the jump to PS4 Pro. Sure the power of PS5 will be much greater than Ps4 Pro/Xb1x but in term of graphic you will be comparing Checkboard 4k/ 30 fps vs Native 4k/ 60 fps. You can expect that most 1st party Sony games to run on both the PS4/PS5 especially if PS5 release in 2019. The willingness to jump to PS5 won't be has great especially for PS4 Pro owners. 

Your first two paragraphs are basically retreads of your previous responses, so I see no need to repeat my points. I will add that you continue to forget that the PS4 has consistently outsold the XB1 when the latter is cheaper. Microsoft didn't just aligned their price to match Sony. They tried to undercut Sony in price to get the upper hand.

Software, Price & Hardware that is what sells console. Software being the most important factors in the buying decisions. Sony is going to dominate in term of software this entire generation. $50 or so cheaper doesn't really make up for the gap in software does it. Beside Microsoft is not cheaper they are on par at best... XB1 is less powerful than PS4 and should be cheaper and Xb1x is more expensive then the less powerful Ps4 Pro. 

To respond to your last paragraph, I mentioned time and time again that ecosystems have become extremely important. The PS4 to PS5 transition will likely be much smoother than the PS3 to PS4 transition. For one thing, Sony will not be switching architectures which will make the learning curve for PS5 development less steep. I already mentioned the potential BC with PS4 games.

How do you think PS4 Manage to grow from PS3 they grab consumer that used to be on the PC, Xbox 360 or Nintendo platform. PS5 won't be the only option when it come time to make the jump to next gen. All we know is what happen with PS4 and Xb1 and Microsoft screwed up with message (DRM &multimedia console), Kinect 2.0, price & hardware.

Your assertion that some PS4 or new adopter will make the jump to the PS4 Pro from now till the release of the PS5 is also a weak argument. It's a good demonstration of your lack of understanding of how the market works. The PS4 Pro appeals to the consumers who want that extra power and are part of the core audience. The core audience is also more in the know than the casual audience. When rumors and news about the PS5 become more frequent, the core audience will be less willing to buy a PS4 Pro in anticipation of the PS5. In addition, at this point in the generation, most consumers who buy a PS4 at this point are less of the core variety and a lot more price conscious. This is why the vast majority of PS4 buyers get the regular PS4.

Your other assertion that the power is Checkboard 4k/ 30 fps vs Native 4k/ 60 fps is extremely inaccurate. I already told how weak the Jaguar cores are even when the PS4 and XB1 just launched. The PS5 will likely use Zen 2, which will provide large boosts in not just clock speed, but also IPC and threads per core. A significantly more powerful CPU not just allows for higher framerates, but also more advanced AI and physics simulation. The PS5's GPU will likely have 2.5x-3x the TFLOPs of the PS4 Pro's GPU, though not all TFLOPs are created equal. If the PS5 uses the Navi architecture, then that will be two generations ahead of the Pro's Polaris-based GPU. Lastly, the PS5 will not just have more RAM, but also higher bandwidth which will allow for higher resolution textures. So to correct your comparison, it's Checkboard 4k/ 30 fps vs Native 4k/ 60 fps + better AI + better physics + better textures + other various improvements.

Hardcore audience tend to remain loyal and are less likely to make the jump to a new console. When PS4 release their competition was the Xb1, Wiiu and PC. Microsoft screw up their release and angered many gamers & WiiU was already a failure. Doesn't mean that just because they are core audience they will jump to the next console. So many Xbox 360 core audience made the jump to PS4. What matters though at the end of the day to be the market leader is attracting casual audience. 

You keep ignoring that PS3 to PS4 was the start of new generation vs PS4, PS4 pro to PS5, we've never had a mid-gen refresh before, this is uncharted territory. PS4 Pro & Xb1X support will continue well after the PS5 release and give much less incentive to make the jump right away to PS5/Xb2.  Also, look at the trends in gaming now, Mobile gaming is becoming more and more popular. When you get games like PubG and Fortnite running on mobile that is direct competition to consoles. We don't know anything about PS5 but are you assuming that Microsoft will do worst to compete with Sony with the Xb2? Unless Microsoft were to leave the gaming market we can expect much better from them this time around.