Hardware wise, I think MS has a pretty good advantage that will give them the edge in comparisons.

Sales wise, I think games will determine it and for me, unless Sony is gonna port all their games to PC in a reasonable time, I will go with ps5.

One of those still has a large presence in Japan. The other has almost none. UK will always be a PlayStation nation. Xbox might get the US again. MS will never have the most sales in a generation. Power has rarely really mattered in total sales. Power/speed is negligible to consumer choice.

MS is looking to buy studio in Japan and increase their presence there

I would hope that XSX could use the SSD in a similar manner, even at a slower degree, because then that means multiplatform games would be able to take better advantage of this. Though it seems like that wasn't MS's approach.

In which case the use of this for third party games may be limited to things like making more use of higher resolution assets in general.
A former Naughty Dog developer talked about this:

Essentially from my understanding, Xbox Series X is more capable of generating higher resolution assets. But you can only go as far with the quality of assets as the memory allows for the game. Basically, the memory is a bottleneck. And I think XSX primarily uses RAM for this.
But PS5's SSD would be capable of delivering higher than usual resolution assets, and more of them, on screen.

For first party exclusive games, this could impact the game design in general. But it's capability of handling large amounts of high quality assets will be interesting to see in multiplatform games as well.

They have said that forever and even if they do. It won't matter. Japan just does not care about Xbox. I did hear a rumor Platinum rejected an offer to be bought by them. We all know the SEGA and Nintendo rumors. 360 they had a bunch of exclusive RPGs from both Tales of to new IPs from Sakaguchi and they had a huge marketing campaign in Japan for them. From big CE's to themed consoles and live events. Did very little overall.  They designed the 360 to be sleeker and appeal more to Japan. It didn't matter. A studio isn't all Japanese studios. Xbox 360 is the best selling Xbox console in Japan and it still didn't sell as well as Sega Saturn there or Wii U. About half of Wii U Japan sales. Japan belongs to PlayStation and Nintendo.

*stares at avatar* "Who dafuq is this handsome mofo?..."

Well.. MS is handling a lot of things right/better but PS5 exclusives may (or may not) be on a different level due to the fundamental differences in approach. Sony's going to unleash most cylinders at an early stage, making Xbox's games and even 3rd party next-gen games look unimpressive by comparison (mainly because they're multiplats).

I can already see FF7R Part 2 (and a few other ambitious games) skip Xbox systems altogether in favor of pushing PS5 to its limit and PCs closer to their limits. In terms of "revolutionizing" and eliminating limitations, PS5 is looking to blow the "more powerful" XSX out of the water. I believe there is a lot of weight and truth to Jason Schreier's words but of course time will tell.

My prediction hasn't changed at all. Sony will dominate this generation in terms of hardware sales. And I'll gladly accept being made fun of in the case I'm proven wrong. Hopefully all the negativity and madness will translate to Sony pushing themselves harder, and we get to have BC with at least PS1 and PS2 as a result. It's a crime that Sony hasn't yet implemented a solution to give their own player base access to what many consider the two greatest console libraries of all time.

Nm 

I think you answered your own question there. The SNES won of course.

It’s more for western gamers who are obsessed with anything from japan ;)

The sony exclusives will prevail, as always. Even with more teraflops, if it is indeed more powerful in real terms when you consider all other factors, it comes down to the ambition and scope of the first party titles will be a game changer. Multiplats will be very similar.