MS has good momentum and the XBox One X is a terrific system, I don't think their next console(s) will flop at all. XBox One is still going to clear a decent 50 million after a bad start. I expect the next XBox to have a better start. 

Exactly what I thought...

Just like Xone does to XoneX.

If the base Model A is a streaming only console,  than expect it to outperform the Model B premium box or atleast match it. 

So it actually is a great idea.

How? They’re in the same generation of consoles. It’s not as if the Scorpio is powerful enough to run dramatically more advanced games than the Xbone. Just the same games, only run them better, and looking much better.

Plus third parties are just going to develop with the PS4 as the base because it is the most popular console. Its not as if we’d be seeing “next gen” games on the Scorpio if the Xbone didn’t exist. 

As Microsoft and the third-party have to make the games run on both consoles, they simply can't ignore the fact that the game should be at least playable on the less powerful console. And that, at least for me, means a hold back, because XoneX could be receiving pretty good graphically detailed exclusives, just like God of War or Uncharted 4, running 1080p to say the least.

It's not about price, but value.  That's why even after MS had all of those firesales on the XBO, the PS4 stayed ahead.  People knew it was a less powerful system, and had a smaller library, so even if it was $50-$100 cheaper, it didn't help in the long run and the gap continued to grow.  In EU, the PS is just going to win regardless.  PS is just a much larger brand there and people are loyal because of the continued value of the PS line.  Same goes for Japan, when making it a Sony vs MS battle.  If MS prices the XB2 base model for $50-$100 less than the PS5, but it is quite a bit weaker than it, than the value just won't be there.  Gamers will want a real jump in power from last gen, which includes the mid-gen systems.

It's also important to note that Sony has more bargaining power when it comes to component prices, after selling 100M+ PS4s.  They will be able to get a better performance for the same price.  So, I imagine that the PS5 will not be that far behind the XB2X, but can still cost ~$399, while the XB2X may be a little more powerful, but cost $499.  It'll once again fall into that sweet spot for price and performance balance.  It'll also be easy to see that power when the tech wizards at Sony's 1st party studios start to release game footage.

That is essentially what I just said.  You just switched the companies around.

Your point was about entry level price, not perceived value for said price.  You said just because it was cheaper than the PS5 it could drive sales.  My point is that you could have a SKU that was $299-$349, but was basically a slightly better XBOX (which itself would be ~$299 by then), but still have barely anyone buy it. Especially if for $50-$100 more you could have a much more powerful PS5. 

Based on the next gen specs talk I've seen around the net, there's enough people that are banking on MS and Phil's 'we're never going to lose again in the hardware specs race', that they better hope PS don't do something crazy like have a $399 base console and $599 Pro at launch or a year later. If MS announces and/or launches Anaconda, and PS announces a higher spec'd PS5 Pro, even if it's coming a year later, it's going to cripple XB hardcore marketing. Now I think that's unlikely because the money overall would be better spent on an affordable PS5 and everything that goes along with it, so I would doubt MS is worried about that happening. It would be a bit of a shocker for some, and a kick in the nuts for others though.

I don't think MS would want their next gen model specs gap to be larger than PS. If there was a $200 Scarlet and $500 Anaconda, your not going to see a $300 base PS5 and $400 PS5 4k. Your more likely to see one brand be the cheapest and the other be the most expensive. At best you would see a $200-$250 base for both with $400 PS5 4k and $500 Anaconda.