Because node shrinks are becoming harder and harder to do. Moore's Law is finally kicking in hard, hence why A.I. is needed for us to get the same jumps as before. But there's no way MS will be able to put out a compelling console in 2026 that doesn't........
- Make current Xbox console owners feel like crap, because they will need to start advertising it in 2025. Imagine hearing MS talking about a next-gen system 6 months from now. Crazy right?
- Make a system that will cost that much less than what the PS5 Pro will at launch. Most of us are expecting a $600 PS5 Pro. You think MS can sell alot of Xbox Next at $600, when the PS5 will probably for $350 by then?
I agree with this, but it comes at a cost. Both financially (as I think it'll need to be very powerful to entice some PC gamers to buy it) and reputation wise. An xbox console that side loads Steam will be viewed equally as a "Steam Machine" as it would be an Xbox. The reputation of that box will hurt with some Xbox die hards. Some will even convince themselves they might as well just by a gaming PC, since it'll have the PC advantages that this Xbox Next wont.
You stated that "you know it wouldn't work", yet only provided unsubstantiated assumptions of reasons why you believe it wouldn't work. When I look at your listed reasoning, I see arguments of what is possible, being conflated with arguments of what is probable. I'll explain what I mean.
Your point of upsetting customers just doesn't resonate in any capacity for me. You believe Series X customers would "feel like crap" if MS decides to replace their console after 6 years on the market? I really don't understand why you would even include this as I just don't see it being the case for 98% of their customers. Especially considering the trend for extended cross gen periods and the console market has been conditioned to expect 7 year generations.
You say there is "no way MS can build a compelling machine in 2026", yet this is just you guessing. I can just as easily assert MS can build a compelling machine by 2026, and since we have exactly zero insight into the goings on of their R&D division, our assertions stand on equal footing.
You are assuming we will see the PS5 at $350, which is possible so let's go with that. If it is a compelling product, the price of the PS5 will have little impact. In 2026 you would be comparing the price of a last gen machine with a next gen machine, these are different target markets that are not mutually exclusive. The success of a inexpensive last gen machine does not inhibit the success of a compelling next generation machine.