The power of a console really depends on the popularity of better TV's. 1080P is the standard right now, but next gen, 2k will at least be the standard at the minimum.
I'd also have to agree that I don't think Microsoft's going to launch a console that isn't an absolute beast in terms of graphics. The other thing I think they'll focus on is securing third party exclusives, more exclusives and timing. What screwed Microsoft over this gen is-
1. DRM. Trust me, console consumers love multiplayer, but we're not going to go for any console asking us to pay a premium value for something of less value when it comes to owning it. There are gamers that game but do so single player, there are gamers pretty much burnt out from multiplayer.
2. Failure to elaborate vision. Microsoft aimed for "better online", but at the expense of stripping the consumer's ownership. Not good.
3. Kinect. I don't care how handy it is, no one asked to have it at launch. I haven't used my Kinect ever.
4. Lack of advertising. It's obvious when Titanfall was the only game truly marketed and advertised that Microsoft has a legit problem this gen. There's barely any commercials about Halo 5, Tomb Raider, nor were there any of Sunset, Ori and so on. Last gen, Microsoft advertised during the super bowl, during games, on almost every channel. Not just games, but bundles and had better presentation. This gen, their advertising is so generic.
5. Weak hardware. The Xbox One was likely going to be a DX12 console. It launched ahead of it's time with loads of bottlenecking.
6. Console design. It does not look like a next gen console at all. (But I love that black..mmmmmm)
7. Phil Spencer cleaning up a colossal mess. Don Mattrick's words, Matt Booty being confused in Q and A, cloud PR, etc.
With that PS5 will truly push next gen tech.
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