Funny, you talk like the console generation started with the 360. If its rewlly all about power.....

What happened with the PS2/Xbox?

Why didn't do PS3 win right of the bat cause it definitely was the "better" equipment. 

Sorry to break it to you, but PS4 winning now has very little to do with its powah, and those business practices you mention that has the 360 owners you claim switched sides and are now dissatisfied? Well, you are onto something there. Just in reverse. 

But you are right about some of the other stuff you said. 

Fine margins.... thats what gamers need to undersatnd. The way i see it is that there will be real 4k and console 4k. In the very same way even within consoles there are two types of 1080p today. 

The XB1 outputs in 1080p, but majority of its games are rendered internally at 900p. That will be the same with this whole 4k on consoles thing. Whatever we end up with will have a higher resolution than 1080p, but it will not be native 4k. And the important thing is that it doesmt need to be.

The simple truth for consoles is that investing all those resources on 4k is a waste and devs that don't will have all round better looking games than those that do. 

I for one would take 1080p with perfect AA and tons of high quality post effects at a locked and smooth 30fps or 60fps with HDR color anyday over 4k without all that extra polish. 

Xbox does not live in a bubble. It doesn't matter if Scorpio is better in every way than X1 when it's still worse than the competition. PS4 has a huge lead, the stronger brand, the more popular exclusives in both quantity and quality. It has itself a stronger successor and added value with PSVR.

There is simply no reason for anyone who previously didn't want an Xbox to suddenly buy the Scorpio. The fact that they release all their games on PC now as well shrinks their demographic. As such there will be less people buying The Scorpio Than X1.

As much as Xbox fans love to think that X1 failed because of bad press and weaker hardware it does not hold up when you look at the continued success of everyone else who supported their platform with a continuous stream of great software and that will pay off in the long haul.

I still dont think you ll scorpio for anything less than 499$ - 599$.
People saying oh it wont be more expensive than 399$ are in denial.

If MS is aiming for a 6-8 teraflop chip, and have a cpu to match, along with enough memory bandwidth / size to support that chip, it wont be doable for less than 499$. Not unless MS is willing to sell each unit at 100$ of loss, which I dont see happending.

This isnt just "oh well give it a chip same size as the PS4 and just overclock it to double its performance", which is non sense anyways, when was the last time a GPU/CPU could oc anywhere close to 100%? MS is going to need a more expensive chip/memory/cooling/case/power supply/ ect than Sony if its aiming for a console at that power range.

Mark my words, scorpio launches at more than 499$.

You can't use the Xbox One S as a base for something,  it indeed increased Xbox One's sales by 75% week by week when launched in the UK, but it is also true that it was close to UK's worse month ever for gaming and is rumored to be only 7K units of Xbox One S at the time.

We will need to wait if this will have some effect after the initia Xbox's fanbase re-buy the Xbox One S (change from normal version to S). Rely only on Hardware release to make a spike in sales isn't a good thing, soon enought this would not have the same effect and Microsoft would have no other option. They would need to make those new hardwares very expensive, because without the regular Generation's life spam, isn't possible to profit without making it from the start.

They would be shooting themselves in the foot a bit if they did. I don't think itl be over $499, let's not forget if any company can afford to take losses on hardware to obtain some marketshare... its MS with their reserves.

I like how Sony have done this, they will have the PS4 as a low priced product and the neo at the launch price probably of the original PS4... sounds sensible. With the XBO selling poorly, I'm not sure what the strategy is to release a top end only console as the lower end won't pick up the slack.

This is wrong in some levels.

Xbox One isn't selling more than the PS4 not because of power, but because of policy and games. How can't someone see that the console with more games and more popular games will sell more than the competition ? The always online was just the beginning of the thing, the gigantic focus on TV features instead of Video Game was, also, one of the reasons the Xbox One Lost USA. Other reason was the price, they made the console avaliable for 500US$ just to push the Kinect, this was a bad move and took people alway from the Xbox One.

Last thing, Microsoft's  contradictory PR. It seems that Aaron Greenberg and Phill Spencer never talk to each other.  Each time  some of them say something the other say something, and then Microsoft make something completely the oposite of what was said. At this point, Microsoft's word is less and less reliable, because of that, newer hardware will have less success (I mean a worse Launch sales), people will not trust them at first. Have in mind that Scorpio will be intended as a "High end product" and will be the first console, of all time, without any exclusive. PS4 will, of course, outsell the PS1, one of the best selling consoles of all time. How do you expect Microsoft to surpass Xbox 360's sales with the Scorpion, when they will be more priced, launch a year later than Neo, and have no exclusive ? This is clearly the oposite situation that the Xbox 360 had, 1 Year headstart, half the price and early games. It is like the PS( a much stronger home-console brand) have all the advantages that the Xbox 360 had over the PS3 and even more, because of the exclusives 100% for the console.

Xbox One isn't selling like the PS4 because they lost the USA's lead and it wasn't popular like the PS-brand Outside of the USA. They lost worldwide, in the end of last generation, by some million(s), even when they had 20 Millions+ advantage in the USA

They failed every time they tried to get some ground this gen, they are selling the Xbox One for free. Now it is very acceptable for them to focus on profit, when a company state "High End" they mean "It will be expensive as hell". What kind of consumer that is in the "High End" level won't have money ?

It will be a bad model if they focus on trying to get installbase, because they will never surpass Sony on that. They need to focus on profit until some opportunity, like the one Xbox 360 had, appears again.

"4) Given the cost of the console will probably be close to $1000US, how can it possibly succeed when the PS3 at $599US was simply too much for consumers? That was also considered premium at the time(blu ray drive, 4 USB ports, native PS2 backwards compatibility etc)?"

They will be stupid to release it at 1,000