Master Chief in Smash would be tight.

Or for his clouded eyes on the subject.

Because he said he CONSIDERS the PS4Pro competing with the X1S.  When you think about price you see the two consoles are not in the same category and MS position of the X1X price wise also says this.  If MS was trying to compete with the PS4 Pro they would have sold it at 399 or 449.  You are looking at this statement from what you believe how you see the market and Phil is seeing the situation how he sees the market.  Its a difference in opinion and perception and market postion them anything else.  Also the Cloud is not a lie either since you still have Crackdown coming with the Multiplayer still in the cloud.  Did the Cloud gain traction with other games outside of Titanfall and Crackdown, who knows.  I know Call of Duty uses MS cloud to spin up servers for MP but as a singleplayer type feature, no its has not panned out probably because of the always connected part.

So X1X being 500 makes PS4Pro not their competitor because it's 400, but X1S being 250 makes it the competitor?

Working out a deal for GoldenEye 007 (N64) would be the next logical "collaboration".

Both Switch and XBox One get GoldenEye 007 Remastered (it already exists in some form).

Nintendo gets to use GoldenEye and perhaps other Rare games for N64 Mini (Christmas 2018).

No X1X being 500 dollars mean MS is not trying to compete with the PS4 Pro.  It does not matter what you believe how this will turn out, its what MS believe they can position the X1X.  Corporation do not think in the same way as your average consumer.  They are looking either at the short or long game or both.  500 bucks for the X1X even if this was a new gen console would be considered expensive for the market and regulated as niche price.  

Mid-stream means MS is only looking at the long game and thus the device is not marketed or priced to penetrate the PS4 or Pro sells.  It’s not going to make someone thinking of purchasing a PS4 Pro go Xbox.  For MS, the product is not competing with the PS4 Pro because the X1X is not going to take sales away from the Pro instead it will get your hardcore console Xbox gamer.  Over time it will be the low end console when the next gen happens and then it will gain more traction as it will be a more viable console where its features will easily outpace the PS4 Pro while holding steady with the next gen games.  Already sites like Digital Foundry is talking about how much gain we will see between now and when the next gen comes out and that gain is not going to be 8X like we have seen before but instead more closer to 2X.  In a market where the next gen is only 2X stronger than the X1X, it will be the perfect low end console while MS sell their next gen.

No one here took him saying X1X isn't competing against PS4Pro as a problem...

But the 2 justifications that he and you gave are completely crazy.

1) X1X isn't competing with PS4Pro because it have 40% more GPU power, PS4Pro is more competing with X1S (and on this PS4Pro have 200% GPU power)

2) X1X isn't competing with PS4Pro because it's 100USD more expensive, PS4Pro is competing with X1S (and X1S is 150USD cheaper than PS4Pro)

Do yourself a favor and review his and yours reasoning and make sense out of it. Because in this answer it was the first time you gave any valid reason for they not considering competition. Except they never claimed it and you were puting other info beore.

I know exactly what Phil said.  The marketing angle for the X1X is that it will be able to achieve true 4k and a better possible chance to even reaching 60fps.  Is that not what he is stating with that statement.  Only time will tell if he is correct and the X1X can show a true difference between it and the PS4 Pro.

Is this you admiting that their narrative and yours were wrong? If so ok, I accept it.