I am curious about people's stated positions on who will be more powerful and, most importantly, why. (I will list my bias' below so people know where I am coming from on a personal level should they wish to temper my words with my perceived personal tastes.) I will state that I think it will take a major gaff of some kind to produce any major shift. Sony had the PS3 and MS had the Xbox One. Mistakes I expect are too recent to have been forgotten and repeated in some form.
From my perspective Sony is in the drivers seat. For MS to launch at roughly the same price/ power point would be suicide. As MS, you would be banking on an even hardware contest which moves the battle for market/mind share to exclusives/ price/ and services lineup. Isn't that just asking to get stomped? Even if you like the studio acquisitions by MS, their next games are still unknowns as to their success. If I was MS, I wouldn't count on Ninja Theory producing my new "HALO" and saving my generation.
Sony does not need to disrupt the market and take large risks. (Note: This does not mean they would not, or should not, take an early loss on the PS5.) Pick you price point and subsidy. $400-500 with a subsidy of probably $60-100. Realistically speaking, there are points of major diminishing returns. Finding those "bang for the buck" points is probably a better determining factor than a pure $/ mm^2 approach.
Now if you are MS and you have to disrupt the normal course of events, what do you do? Sony can probably produce a nice value proposition and count on their exclusives to carry them. But if you are MS, how do you ensure a notable power advantage? This really cannot be something minor like: 5% more TF and an extra 500GB of SSD space. That isn't going to move the needle much. At least, I cannot see how it would. You would have a good idea of what is possible on 7nm, early Navi and Zen 2. So how do you leapfrog your opposition without pouring money into it, selling it at a horrible loss, and receiving a 15% or 20% TF upgrade at most?
Basically: How would you attack the situation if you are MS? The only answers I have been able to come up with so far revolve around leveraging a later launch date (but within a year certainly, and 6 months preferably.) If your opponent is going for late 2019 (which well believed rumors early pegged as the initial release date, with a delay for varied and vague reasons), Zen 2, early Navi, 7nm and an SSD (with whatever customization's Sony makes to accommodate their design goals - i.e. - backwards compatibility, RT, etc) - then you target early Zen 3, mature Navi, 7nm+ (I think this was expected to be 10% on clock speed and 20% on density gains over the non-EUV 7nm - feel free to correct me if this is wrong),
Could you launch Lockhart first and have Anaconda 6 months to a year later? Or would that be conceding the power high ground too much to your opponent?
My biases - I want competition. Hardware differentiation would be nice if possible. The only existing platform specific franchises which have any hold on me are Horizon: Zero Dawn and some vague hope that HALO returns to form. Neither of those are likely to heavily influence which console I get. To date, my console bias that is relevant here (ignoring old Nintendo, Atari, Sega, etc) is I owned an original Xbox, a 360 and then the PS4 (my first ever Sony console). I don't regret any of those decisions.