The thing is.... Playstation does a PS6 thats 600$ (half cost of this premium price console), and its sold at 100-150$ loss at start.
That puts you at a 750$ unit vs a 1200$.

So lets say PS6 is 2/3rds of this premium console, in terms hardware power.
However it costs half of what the Xbox premium console does.

Will the avg. joe, care?
Will people pay twice the amount (for the console), for that last 1/3rd of performance?

That has to be a very niche market.... I'm thinking, if you go that route, you end up in the 10-15m range sold, of xbox premiums for its entire lifetime sales.

Honestly makes much more sense than selling a 1200$ premium only console.

The price difference would need to be noticeable for it to have a effect.
So like Imagine future console, like a PS6 is 600$. Sony eat 100-150$ loss on each unit sale.
Xbox would then (to do what you want) need to sell something more powerfull than a PS6 (which means higher production costs, so lets say it costs like 800$).
If xbox were to sell it cheaper than the PS6 at 600$.... lets say 100$ less? so at 500$.
That would mean xbox would need to eat, like 300$ loss on each unit of hardware sold.

That would grow their user base on xbox consoles.
So instead of selling 30-40m.... they might go back to like 60m.
The cost would be 60million units sold x 300$ loss on each unit = $18,000,000,000. ($18bn losses on hardware)

They would need to sell a lot of software to recoup that amount.

$600 PS6 (Orion), $1200 Xbox (Magnus) is Kepler's guess lol. Personally I don't see it being less than $999 with those leaked specs.

At this point I wouldn't put it past Microsoft to price it over $1500 lol. But it might launch earlier than PS6.

I expect $1000-$1200. But I think they will also have weaker/cheaper configurations to succeed the Series S.

If they go the route of 2 consoles again I am guessing the "cheaper" one will be similar to PS6 in specs compared to a console relatively weaker like the Series S was.