You heavily implied that consumers would look favorably on an XB1.1 versus a PS4. If all you want to do is argue semantics, don't bother replying.
What I'm saying is that this shift in XB1s strategy no longer attracts the same market that current consoles do, given that it's a brand new thing that more closely resembles the PC marketplace than the current console market.
The XB1 is not a phone. It should not be compared to the phone industry. I could waste my time making a stupid analogy that doesn't fit so I can misrepresent your post, but I'd rather make an argument that stands on its own merit. Here it goes:
When given the choice between the PS4 and XB1, most of the market picks the PS4 for various reasons, only one of which is performance. Should MS release a new version of their machine, only that factor has changed. On top of that, the new machine will be more expensive, which we've already seen is a crucial factor in which console the market chooses (much more important than power).
The console market has proven gen after gen that power is NOT the deciding factor for most consumers. Why would the XB1 suddenly turn that around?
I believe that this move will shrink the existing XB1 market because it is changing the consumer experience to be closer to that of PC gamers. They aren't identical, obviously, but by stepping away from the norms of the console experience and getting closer to the PC experience (which is pretty much in their own words what they plan to do), I can see some XB1 gamers switching to PCs rather than buying a new XB1.X. I can't see this shift somehow stealing people away from Sony in the existing console market.
And we have no idea at all whether these iterations will add novel features like VR blowjobs and what have you, so I am REALLY, REALLY not sure how you expect to have a reasonable discussion with anyone when you can speculate that MS will give us the motherfucking moon and cast shade on everyone else in the thread.