Vague language, but it's very likely that Microsoft will produce something that has higher paper-specs even if only extremely marginally and for bragging rights more than anything.
I don't think there's that much of a productive discussion to have until we actually see what those specs are, at any rate. Something that probably won't happen officially until next year (we'll get some teases this year but won't have the full picture, much like how Sony's spec releases didn't mention the majority of GPU specs or memory setup).
This seems like the most likely outcome. We know they are aiming for a range of next-gen devices, having a lower priced alright spec and a higher best spec means they can advertise both and claim both. Which going off how MS PR does their thing would likely be a dream scenario for them.
It will be interesting to see how it turns out in the next year or so, the PS4 didn't "win" because it it was more powerful but a combination of factors, it just so happened to then be the most powerful because MS went with Kinect.
The question will be if PlayStation has garnered enough of a fan base to carry it into next gen without leading to some sort of mass switch that seemed to happen at the start of this generation. Sony seems to want to avoid that by getting out in front with things like backwards compatibility of games and hardware news now. And anecdotally speaking it seems to have worked to some degree, some people I work with have already discussed trading in their PS4s for PS5s, and these are the people that buy a couple games a year at best and generally only play GTA and FIFA. I can also see why Sony is against cross platform play at this point going into next-gen, it makes it easier to leave the platform they have people invested in, they want to retain that player base and not make it easier for them to leave for the likes of more powerful hardware and do it easily too.
At the same time MS also likes to get their mindshare, both the XB1X/Scorpio and Scarlet were name dropped far before release to get far ahead of what anyone else is doing by planting that seed. I'm not sure if it has the same pull with the smaller install base, but I imagine they think it is enough at this point. We also know MS is moving almost everything they have into being more service orientated and platform agnostic, they would much rather have lots of users paying a bit than fewer users paying more once, and it seems to be working out for them so far, and now they have more developers to generate exclusive content for their platforms going forward.
And then there's Nintendo who seems quite happy to sit out of the who's most powerful fight and do their own thing, which seems to be working brilliantly.
So yea, going into next-gen is going to be super interesting to see.