Hopefully they dont wait til it's too late so dev's can begin working on ports.

To play devils advocate, Microsoft has more studios than Sony now... And a massive portion of which we haven't seen make an exclusive that really pushes the Xbox's hardware.

Microsoft doesn't need to beat Sony by a significant amount on the hardware front, just enough that they can advertise it like no tomorrow.

Interested. What software problem?

Precisely. Microsoft is not a $1 Trillion~ dollar company for nothing.
By pushing the games angle, even when platform units are small or the console fails to gain traction, Microsoft will still sell to PC gamers, so there is less financial risk for them overall.

Their devkit programer tools , and game drivers , and it shows on their several early games like Ryse and launch title. Some game did not hit intended resolution and running at low framerates.  

I'm pretty sure they have the same number of studios, as CGI also said. Unless Wikipedia isn't updated?

But you're right that we haven't yet seen the effect of all MS studios developing XB exclusives.

PlayStation Worldwide Studios:
1. Bend Studio (Days Gone)
2. Guerrilla Games (Horizon: Zero Dawn)
3. Insomniac Games (Spider-Man)
4. Japan Studio (Astro Bot: Rescue Mission)
5. London Studio (Blood & Truth)
6. Media Molecule (Dreams)
7. Naughty Dog (The Last of Us: Part II)
8. Manchester Studio (unannounced PSVR game)
9. Pixelopus (Concrete Genie)
10. Polyphony Digital (Gran Turismo Sport)
11. San Diego Studio (MLB The Show 20)
12. San Mateo Studio (unannounced game)
13. Santa Monica Studio (God of War)
14. Sucker Punch Productions (Ghost of Tsushima)

Xbox Game Studios:
1. 343 Industries (Halo Infinite)
2. Compulsion Games (We Happy Few)
3. Double Fine (Psychonauts 2)
4. inXile Entertainment (Wasteland 3)
5. Mojang (Minecraft Dungeons)
6. Ninja Theory (Bleeding Edge)
7. Obsidian Entertainment (Grounded)
8. Playground Games (Forza Horizon 4)
9. Rare (Everwild)
10. The Coalition (Gears 5)
11. The Initiative (unannounced game)
12. Turn 10 Studios (Forza Motorsport 7)
13. Undead Labs (State of Decay 2)
14. World's Edge (unannounced Age of Empires game)

So now pure speculation based on an editor from Verge with no real basis other than his own mind is enough to classify as a credible enough rumor these days?

I think it's two things:

1) sony are leading the next gen as they did with the last, so they are further down the pipeline.

2) MS is trying to learn as much as they can about the ps5. They've already changed plans according to rumours from two next gen models (one being super powerful), to just the one. They might change their mind about vr again and they don't have the confidence sony do with their hardware unless they can call it a beast or the most powerful.

They lack vision and confidence. Sony at least knows what they are making, why and what purpose it will serve. You can't plan properly by just waiting and anticipating, you need vision and planning too.

He is the guy who leaked Durango and already confirmed to be a legit insider, but for the info he got is another different matter because most of insider also sometimes can be wrong depend on whom he got the info is.

Sounds like bullshit. A big ass publicly traded company like MS is trying to punk another company with specs/price? What if the dev kits Sony sent out are fabricated leaks with fake specs to get MS to react, worse yet, mislead MS? The 2 companies have too much on the line than to sit around and watch what the other is doing and then plan an entire console based on what the other is doing.

Its more likely MS got caught behind the curve and they are not as far ahead as Sony with their next gen console.

Not to mention some SIE studios have multiple teams within them (Japan Studio, Insomniac, Guerilla Games) and Sony have been expanding their in house teams for a few years now. 

I doubt either console would be significantly more powerful (more than 10%) than the other.