That's probably not enough to swing the console market much. It's like Coke, Pepsi, and Virgin Cola...there are already two popular brands of cola and no reason for people to switch. MS would need a crazy amount of killer titles to take the eyes off PS and NSW now. Their chance to compete on games and library and experience was XBO, off the back of 360. Now if they want to compete on consoles with a view to being number one of a balanced competition, I think they need a USP. I dare say MS feel that way too given recent comments - consoles just aren't important to them now.
The value of a mid-gen refresh would be to offer a USP. MS can either create a niche target, like the Elite Controller, a product just to drive brand and high-end profit margins, or go for a Switch/Kinect unique experience to attract new XB customers.
For Sony, there's no obvious business need for a higher-tier PS5, and the move would be just to sell at margins to enthusiasts for prestige and a little extra cash. Unless they too have an opportunity for a 'disruptive' refresh, but I've no idea what could be other than, like MS, a Switch knockoff*
* The tablet/hybrid being my idea for PS4, remember.
Agreed. But a focus and capability to create great games would have a positive effect on the Xbox business as we move along gens. I personally think it was the games that made the biggest difference with the 360 in comparison with the XB OG and the PS3. Sony's missteps helped of course. But if MS concentrates on making great games and does a good job of doing so, it only has to wait for Sony to f#$% up and we can have the 360/PS3 gen all over again.