I see four possible scenarios:

1. Ps4 neo sells well and Sony's success continues.

2. The masses decide to skip ps4 neo in favor of the upcoming more powerful Xbox Scorpio and the Xbox Scorpio go on to outsell the ps4 neo until ps5 comes out.

3. Microsoft gets tired of sony outselling them and purchases Square-Enix (Final Fantasy, Dragon Quest, Kingdom Hearts) and Electronic Arts (Fifa, Madden, Mass Effect, Battlefield, Star Wars) effectively ending the console wars.

4. The Nintendo NX amazes everyone and goes on to sell 200 millions units in 10 years.

Pre-Scorpio:
The PS4 has the best graphics, why would I buy an Xbone?
Post-Scorpio:
Graphics don't matter, PS4 is still gonna outsell it.

Bull i love my ps4 iam geting the new xbox over the neo

I haven't seen any Xbox fan say that graphics don't matter, just that the gap wasn't big enough to matter, and that's technically true, this gap is bigger.

The power gap between Scorpio and Neo is irrelevant for 3rd party developers, because the 3rd parties are required to make their games playable on original 8th gen specs. Sony's not allowing 3rd parties to make games playable only on Neo, and aside from VR MS has also said all games will be forward compatible.

Hence no developer is going to optimise the the upgraded hardware for a long time yet. upwards of 80 million PS4s in homes by the time Scorpio comes out cannot be ignored by 3rd parties, and probably 60 million original spec'd PS4 in homes by the time Neo launches as well. It will be years before the player base on either of the upgraded platforms makes developers see og PS4 and XB one as irrelevant.

With VR, I think MS is looking to bring about a more rapid change to a Scorpio only player base. If VR gets big, I think MS is hoping consumers will drop pre-Scorpio skus like a hot potato. Sony seems to be less concerned about moving the whole player base across to Neo.

Pretty much. Anyway I'll be enjoying a bunch of games on my Xbone and PS4 this year while other people argue over which is better

I personally don't care about a little extra graphics power. I'm just glad they'll play 4K blu Rays since I recently got a 4K tv.

PS4/X1 games look fine enough already to me.

Well OP, God Howard was onboard, so we know we have a god among men among our supporters, enough for ya?

For NEO and Scorpio...

Both will have mediocre sales... you know why? 4 reasons...

1. Both consoles have no exclusives. They are just a resolution/FPS boost.
2. Both are going to be more expensive than PS4/X1.
3. Devs are not going to focus on these new consoles and forget about +70M users on PS4/x1. they will just work on better resolution/frame rate, that's it.
4. They will have short life, 3 years maximum.

Consoles need Generation leaps and the old consoles must die so that the new consoles can succeed. In the end, the battle remains between ps4 and x1, until the real "new generation" appears.

But if you listen to Spencer, all of Scorpio's extra power will go into resolution. That's what "if you have a 1080p TV Scorpio will be of no benefit to you" means. Whereas with Neo the express intent is for games to look better in several ways: better fps, better textures, better lighting, better shading, better AA etc etc, as well as being capable of upscaled 4K output (though I bet developers won't do that at ever). Essentially if a developer creates an optimised graphics setting for Neo, it will be impossible for Scorpio to render that natively in 4K. Scorpio must use graphics settings for orignal Xb one specs to be able to render in 4K. 

Therefore Neo will have the best graphics and Scorpio will have the best resolution. Unless you think resolution is all there is to graphics, which of course no one with half a brain thinks that.

Bascially MS has decided that 4K is the holy grail, and they have sacrificed all other potential improvements in graphics that a 4x power increase can give in order to be able to claim 4K native resolution. It's like they got so mad about always having the lower res version of a game that it became a red rag to them and they have focussed solely on that as the way to turn the console tide in their favour.

I wonder though, if developers are going to ignore MS's intentions and produce sweet looking games at 1080p / 4K upscaled and just ignore the whole 4K native stuff. After all, isn't it up to developers how they will use the extra power? MS can't lock the power up so that it can only be used for 4K resolution...right?