An upgrade on what?

From the leaks we are getting 

XBox 2/Scorpio - 6 TFLOP performance (5x the XBox One)

PS4 Neo - 4 TFLOP performance (more than 2x the PS4)

Nintendo NX - 1-1.4 TFLOP performance (closer to the XBox One, even that might be stretching it .... according to Emily Rogers). 

If Blackberry makes a new phone that's 5x better than their previous phone, but is still only 1/3 the performance of the new iPhone/Samsung Galaxy model, is it really an "upgrade"? 

The Wii/Wii U strategy of using outdated hardware has put Nintendo in a bad position now where they are effectively 4-5+ years behind Sony/MS constantly. 

Right. You'll have to buy the same games AGAIN. ^^

You don't understand the point do you? No game is going to use that extra power so the's no need to even aim for that range when every game has to run on the current models, it's about as relevant as saying "The GTX 1080 is out soon for PCs", you've basically made a null and void topic here as all NX has to aim for are the current models.

Sony and developers are not going to drop 40m players and it's too much of a risk for MS to drop what they have now as they're already in a hard spot themselves.

We don't even know yet what the NX is, but if their strategy is only to play catch-up with Xbone and Ps4, the NX is set to failure regardless of Neo and Scorpio.

That's the thing, I have played their games my entire life and have loved or at least liked them all (1st party, at least). Though, as I play Star Fox Zero and review it, I may have actually found a game I am extremely disappointed in (but I'll discuss that in my review thread). Even their "bad games" are decent compared to games in general from any company. They have earned my trust over decades. So if they have a sucky launch (which it sounds like the NX is going to have quite possibly the best launch ever for Nintendo, let alone better than Wii U), then I will trust that they will still produce the quality I expect and I will still buy day 1 NX.

I don't really buy this, if you can see a difference between PS4 and XB1 ports (ie: if you can notice a difference between 1080P + 60 fps and 900P + 30 fps) you're definitely going to notice differences between a PS4 Neo and especially with an XB2. 

All it takes is one developer looking for an edge for their games/looking to get more attention (say Battlefield vs Call of Duty) to push the envelope and then the bar will be raised and other developers will have to follow suit. 

This also sounds a lot like the rationalization used for the Wii (don't worry! Iwata said the graphics will make you say "wow!", Wii games will be just like 360/PS3 games only in SD resolution vs. HD resolution, no big deal!) and Wii U (don't worry it'll be able to handle all the PS4/XB1 games, differences will be minor because devs can't afford to make higher end games!). 

Also I don't think MS really even agrees with this "parity" stuff ... this generation has not gone great for them and I don't think they're attached to it which is why they are making what looks like a full blown new console. XB2 (6 TF) vs. XB1 (1.2 TF) is a 5x leap, that's the same as the XB360 to XB1, there's no way there's not going to be substantial differences here as time goes on. 

Developers already utilize more power on their PC versions of games vs. PS4/XB1 as is. 

Got you.

Developers don't utilize more power on PC, they just give you the Option to raise the Graphics, raise the Effects, and active everykind of thing that can improve the Game's Graphics, With Xbox Scorpion and PS4 Neo you will not be able to change the Settings the only thing they will do is add more Pixels and Frame-rate otherwise they will screw the first ones who purchased it, and if the Upgrades are the more expensive version people will just purchase the Normal versions instead.

At the most they will do 1440p 60FPS if the Xbox Scorpion is 6 Teraflops and if the game already run at 1080p 30fps on the normal Consoles.

I personally think you will eventually see better than this, ultimately though I think what will happen is even with the few 3rd party games the NX gets, it will get the worst looking/performing versions and it will lead to the predictable Nintendo-fan-to-third-party bitching contest of "why are we getting the worst ports, I'm not buying this" which then leads to developer X/Y/Z concluding their games can't sell on NX, rinse, wash, repeat. Nintendo fans shunned things like Assassin's Creed and COD on the Wii U because they didn't perform to parity, they are in for a rude awakening I think if they think NX ports will have "parity".

Scorpio is a legit next-gen console too IMO, unless you don't think the XBox One is a generational leap above the XB360. I think MS will want better looking games, why wouldn't they, it will be an advantage for them over Sony. 

Generation ins't about Power Generation is about games and if the previous consoles must have the same games as the new consoles so this isn't a new generation, with this Thinking the Alienware Ultimate Edition is of what generation ? the 15th ?.

Majority of the people will purchase the normal versions or the Slim Versions because will be the cheapest ones and will play all the games the other versions will have, if the NX is on par with the PS4 and Xbox One the developers would rather make NX versions(Where they can get much more potential sales) than enchanting the PS4 and Xbox One's versions (where the owners of Neo and Scorpion would be able to play the first Model's Version).

Only because a game look prettier than the other version this does not means that people who were not interested in the game will purchase it, It will only please who purchased the New version of the consoles and already was interested in the games.