Once Phil Spencer established the path forward after the launch debacle, I expected Microsoft to have a more powerful console on the market at all times. By going generationless, they can simply have new versions ready to go for whenever Sony drops an upgrade.
Sony has one weakness, and an arms race will exploit it. Microsoft has a was chest, and they will force Sony spend as much as possible to keep up. The Xbox is research tool and longterm project for Microsoft. Playstation is Sony's bread and butter at this point. Microsoft will take losses to win the long game.

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