It's a solid machine. The biggest surprise here is the size: finally it's not humongous! Also, $500 is the starting point, so it will drop to $450 and even $400 in 2018. However, there was no word on VR. I see it as a missed opportunity. Microsoft lacks an infrastructure here. Most likely, it will work with the other available solutions, but it looks like VR is not their priority.

I'm pretty sure Sony will follow up with PS5 or PS4 Pro Plus in 2018. 8 TFLOPS of performance guaranteed at the same price point or even cheaper. At least, Microsoft is closing that performance gap that has been there since 2013, which is a good thing. I didn't see stellar new games though, which is a bad thing.

...then if you combine that with the possibility of a higher retail price than the competition ($500), Microsoft might have another problem on their hand.

I really don't know what's happened to their strategy! Almost everything from the Xbox One onward does not look like something you would expect from a company that launched the original XBox and XBox 360. They used to be ahead of the curve in almost every single aspect. Especially, when it comes to their hardware. The original XBox was running circles around the PS2 and the GC. The Xbox 360 was launched 1 year earlier than the PS3. They've been playing catch-up for quite some time now with the whole XBox One thing.

I like how Tim said that allegedly they underestimated the demand for the iPhone 7 Plus. Didn't he say the exact same thing when the iPhone 6S Plus was launched?

Everybody is waiting on the new iPhone. However, there are a bunch of reliable sources saying it will suffer from very limit supplies when it launches. On top of that, some of the circulating prototypes are disappointing and I hope they don't come to fruition. I don't want the fingerprint scanner on the back of the phone...

But after this new edge-to-edge OLED iPhone I don't think Apple has much left up their sleeve.

@Barighm: And how many times have we been through cases of this marketing lie/exaggeration? Tons! Even Sony has faked their specs before! The infamous launch of some of the PS2 games when they blatantly ran pre-rendered even though it was stated otherwise (Devil May Cry anyone?). It's the industry. The Scorpio is gonna be in the same ballpark as the PS4 Pro in terms of performance for sure. Just with some extra fps and pixels. 6 Teraflops is simply not enough for native 4K at 60fps without some compromises. Even this number is just a theoretical thing! Based on the specs and the fact that there are only 4 more shaders than on PS4 Pro speaks louder than that!

It's funny how nobody's talking about the fact that the Scorpio is not that tremendously more powerful than the PS 4 Pro. 40 shaders vs. 36, some more GB's of the same memory type. The same CPU architecture with some minor speed bumps. In real life it will be nowhere near that 40% theoretical advantage that they claim on paper. More like 20-25%. Will the games run faster? Yes! Will it have some better textures? Sure! However, the difference is gonna be more like that between the XBox One and the PS4 when they were released back in the day (hey, even that difference was greater: 12 shaders vs. 18, DDR3 vs. GDDR5). Just like some industry professionals have already noted before: it's gonna be just a marketing war here with no big difference between the 2 in terms of their performance. Microsoft needed this console as they have been playing the catch-up game for quite some time now. The original XBox One was pretty much underpowered. Let alone, the whole VR thing, which is not possible on the current XBox Consoles due to a very limited number of shaders (12). The bottom line is in reality the Scorpio will rely on that checkboard/upscale thing as well. They'd better price it at $500 or lower. Otherwise, I don't see any reason for masses to jump on that bandwagon.