It's not a "half-step" like the rumored PS4.5/PS4K/PS4 Neo, right?
Microsoft has been for a while now trying to combine their Windows and Xbox platforms into some type of unified system. The end game seems to be a family of Xbox consoles that all games can scale across (old games on the new systems, new games on the old systems) just like PC. Microsoft claimed as much for at least the XBO and Scorpio.
And in this sense, Project Scorpio would be the end of the "traditional" hardware cycle where one generation replaces another. As long as games are made to scale with the hardware like PC games do, Microsoft could bring out a new console any time they want. They could even launch a high end model alongside a cheaper model with lower specs at the same time. It's like this generation is being extended indefinitely.
So the real question that I was hiding until the end: is Sony also pulling this same shtick with the Neo? The rumors are that it'll share its library with the PS4... so does that mean Sony had the same plan? Is this generation the "last" generation because it'll go on forever?
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