The Xbox Scarlett is on the horizon and Microsoft is already preparing for its launch, as Phil Spencer has told journalists that the system will not be outdone in terms of price and power. The Xbox One had a rocky launch due to a number of different factors that allowed Sony to become the current market leader with the PlayStation 4.

The Xbox One was plagued with bad press following the announcement that it always needed to be connected to the Internet in order to function and that there were severe restrictions in regards to borrowing and loaning out games. Microsoft backtracked on these policies before launch, but the fact that the Xbox One was a hundred dollars more expensive than the PlayStation 4 (thanks to the costly Kinect peripheral) meant that the system lost ground that it would never win back. The PlayStation 4 is having a record fiscal year, while Microsoft is busy preparing for the next console generation.

A new console generation is due to start at the end of 2020 and Xbox chief Phil Spencer won't be repeating the mistakes of the Xbox One in the future. Spencer spoke to The Verge at the x019 event about the future prospects of the Xbox Scarlett and he revealed that the system won't be outdone by the competition in terms of the strength of the hardware nor its price, which were the chief issues with the Xbox One at launch.

“I would say a learning from the Xbox One generation is we will not be out of position on power or price. If you remember the beginning of this generation we were a hundred dollars more expensive and yes, we were less powerful. And we started Project Scarlett with this leadership team in place with a goal of having market success.”

There have only been a few details released about the hardware of the Xbox Scarlett and almost nothing is known about its launch lineup. Spencer has played the first Xbox Scarlett games and he knows what the system is capable of, but it will take more than power and a cheap price to win over fans of other systems. The Xbox One lacks the killer exclusives of the PlayStation 4 and Nintendo Switch, which is why Microsoft needs a strong library of titles going forward.

Price is a huge factor when determining how successful a console will be during its launch window. The PlayStation 3 lost a lot of ground to the Xbox 360 in the beginning due to its insane $499 starting price. It's difficult to make predictions about the price of the PlayStation 5 and Xbox Scarlett, as the information that has been revealed about the hardware suggests that it will be more expensive than previous consoles at launch. It seems that Spencer and his team are willing to throw down the gauntlet in order to take back the ground lost to Sony in the previous console generation and that could mean a price war in order to steal the crucial Holiday 2020 season. All the fans can do now is wait for the official reveal of the design and price of the Xbox Scarlett.