But since MS releases all their first party games on PC regardless of there being one or two Xbox systems, they can't ignore systems with lower specs.
PS4 Pro and Xbox One X set a new standard which is what a new generation of consoles (in this case a mid-gen upgrade) always does. 7th gen games were for the most part 720p (or even a bit below that) and 30 FPS. X1 were mostly 900p 30 FPS with a few games in the 720p range. PS4 games were mostly 1080p 30 FPS with a few games in the 900p range. PS4 Pro games were mostly 1440p 30 FPS OR 1080p 60 FPS and Xbox One X games were mostly 1600p-1800p 30 FPS OR 1080p 60 FPS.
That's literally what they were capable of, doubling the framerate or resolution (in case of X1X quadrupling the resolution) of games and increasing some effects. Sure, you can always create better looking games at a lower resolution and framerate, but why would you do that? There's a reason no one is doing 240p 20 FPS games anymore (*cough* Zelda Ocarina of Time *cough*).
Many series that used to be exclusively 30 FPS on previous consoles have seen a 60 FPS iteration this gen. This will become the new standard and that alone will limit next gen visuals by quite a bit.
The Unreal tech demo looks great to me at 1440p 30 fps on ps5. Plenty games will be 1440p30 next gen on ps5 utilizing the fast I/O of the SSD. The idea that a 'high end' console is only there to run at higher res / fps just isn't for me I guess.
I have a 65" 4K HDR tv and from the couch (about 12ft eye distance) I can not tell the difference between 1440p upscaled and 4K native, or 1800p checker boarded and 4K native. Native 4K is a waste of GPU power plus many games are absolutely fine at 30 fps. I don't even see the point upgrading from blu-ray for movies at 12ft and 65".
Proper anti aliased 1080p with 4K HUD probably looks perfectly fine at normal couch viewing distance. It's like this whole native 4K push is just for those playing 2ft away from a monitor.
But no one says that you can't have multiple graphical options in next gen consoles, similar to what PS4 Pro and Xbox One X are already offering.
Many enhanced games have three options:
1) Resolution: max resolution (4k on X1X), medium to high effects, 30 FPS
2) Performance: 1080p (or dynamic) resolution, medium effects, 60 FPS
3) Quality: dynamic resolution, max effects, 30 FPS