I'd say they should actually just bring the Scorpio as being their next generation. Just say it's a fully backwards-compatible next-gen system and leave a stained XBox One name behind.

Next gen console are not coming 2018, and to lauch xbox "two" in 2018 would be a huge mistake.
2019-20 at earliest whit 7nm FinFET tech and Vega 20 or Navi.

This. Judging by Microsofts exclusives they aren't even at mid gen yet

I want a powerful console that plays my current games just fine and offers great visuals for new titles. I don't care if you call it Scorpio or true next generation (something MS said should disappear).

There is no way to release a significantly more powerful console than the scorpio in 2017 and price it reasonably. Yeah Vega, Ryzen, HBM2 sound cool, but I doubt you can put this in a console and ask for $449 as early as next year.

Therefore I am quite happy with the way MS is going.

It actually does matter what the low-end is doing. The low-end is what governs what goes in a console.
Consoles are cheap, cost-sensitive devices, you don't get $1000 microprocessors in those little boxes, the cheaper something is, the more likely it becomes.

Consoles aren't using high-end graphics hardware. Not even Scorpio is using high-end PC hardware, it's using mid-range, coupled with a low-end CPU.
Scorpio is also not using HBM1 or HBM2 despite HBM1 being around for several years and HBM2 being widely available now... Why? Cost.
I don't think you fully comprehend how much interposers adds to the bill of materials, that's money that takes away from GPU or CPU performance.

And the industry is not moving onto HBM2. It is moving to GDDR6. HBM is for high-end and professional markets. Everything a console is not.

I wasn't surprised. So that's not everybody.
With GDDR5 in the low-end at the time it was always a possibility.

GDDR6 isn't competing with HBM either. I don't think you fully comprehend it's positioning as a memory technology.

Vega isn't going to be enough for next-gen. There is a chance it's not even going to be faster than the Geforce 1080Ti if the early leaked benchmarks are to be believed. (Grain of salt and all that.)
Geforce 1080/Ti is not next-gen. I am actually a PC gamer. I have played around with that level of hardware performance. It's not next gen. It's got some amazing performance. But next gen? Hardly.
The jump between the Playstation 3 and Playstation 4 or Xbox 360 to the Xbox One would have been more significant.

Next Gen usually brings with it a plethoria of new amazing effects, multiples more memory, multiples more performance, significantly improved efficiency.

***

I have typically been correct on my predictions on what hardware the Switch, Neo and Scorpio has ended up with, based purely on my hardware knowledge, hardware that was/was going to be available and where they sit as far as costs lay.

If Next-Gen starts in 18 months and is using Vega, then it's already going be old and outdated. I would expect a derivative of Navi at that point, not Vega... Or at-least a semi-custom NCU architecture that is a little bit of both.

Xbox 360 games.

Do you even play MS exclusives or just complain?

I have enjoyed MS exclusives more than the competitors and I own all 8th gen consoles.

Scorpio is an ideal scenario. Its significantly better looking visuals while not killing off the X1 which is still very cabable.

Its too soon for 9th gen machines but many also want more powerful consoles. So I like what Scorpio is doing.
Lastly, people might feel better about mid gen upgrades if PS4 Pro was better. Sony made a mid gen upgrade seem almost pointless.

Scorpio this year while the 4th generation Xbox can wait.

I'd rather go with Scorpio. We have yet to see how it works, and what it can do. Impressive on paper, but the real world is what we need to see.

Plus I would rather see the next Xbox make a bigger jump above Scorpio that just a few tweaks and 4 more gigs of RAM.

I think the general consensus is that... Xbox One exclusives are not only scarce, but they have also been pretty mediocre.

Sunset Overdrive is probably been my most enjoyable Xbox One exclusive so far. It was fresh, new, never took itself seriously and had some fun mechanics.
And Killer Instinct has been my fighting game of the generation. But that's where it ends.

Halo 5 looked terrible graphically, released bare-bones, microtransaction filled.
Halo Wars 2 didn't live up to the same level that Ensembles set.
Gears 4 (I haven't actually played this one yet) didn't rate highly.
Recore was a dissapointment.
Fable, Scalebound got cancelled.
Ryse looked pretty for an early generation game, but gameplay was a bit meh.
Dead Rising 4 makes me want to gauge my eyes out. Not a good looking game.
Quantumn Break didn't live up to it's potential either.

And the only real exclusive that I am looking forward to at the moment is Sea of Thieves... But we shall see if it's actually any good. - Rare isn't the same company it used to be during the Nintendo 64 era, even though I did enjoy Perfect Dark Zero, Banjo Kazooi: Nuts and Bolts, Kameo and Viva Pinata.

Microsoft needs to pick up the exclusives game. And even if S.T.A.G.E. doesn't own those games listed... I sure do. I can even provide photographic evidence too. ;)