I hope not.

Probably not. Sony could just sit back and keep winning, there's no need to put in the effort to top the Scorpio. Games will still be made for PS4 first since development starts at the lowest common denominator, so it's not like it will start getting worthwhile exclusives... And if it does, just have a mid-level PC. That's what I've done.

No.

PCs even with something like an i5 and GTX1160 will outstrip the reported specs of Scorpio handily (and play X1/X1S games). Spec-conscious gamers already know that PC is the way for top performance in multiplats, and preference in ecosystem and exclusives determine which console people choose, if any. Halo fans didn't care that the X1 was a weaker and more expensive console in the launch timeframe, and despite PR-speak, Uncharted/etc fans didn't honestly care that the PS4 was a bit more powerful than the X1 either, it was about the games they preferred. It bears remembering that the PS2 dominated Gen6 despite being weak, and that the most powerful Xbox compared to the same-gen consoles was the OG Xbox, which did the worst. That doesn't mean that Scorpio will sell terribly, but don't look for anything to change this gen. Sony fans will buy PS4, MS fans will buy Xbox (or PC), and general gamers without a brand preference generally buy what's most popular and affordable (pretty much a toss-up with an advantage to Sony here).

PS4 needs more games, not more revisions, to be more successful long-term. No, I'm not saying PS4 'has no gaems', I'm saying just keep the pipeline flowing and don't further clutter the market. FWIW I think both PS4P and Scorpio are a mistake that could have a chilling effect on console sales (and certainly will bring less numbers than hitting $199 would do for 2016-2017 timeframe).

In an alternate reality where PS4P/X1S never existed, I think PS4/X1 could have sold steadily through 2019 with total sales of ~120M/45M+, and be highly profitable for both.

We might be stuck on 14nm for up to 5 years. This generation is going to be extended.