Where they fucked up is they didn't provide a way for people to "de-register" the disc so they could sell or loan it. The obvious way to do it would be to say that whoever owns the disk can play it and other images are invalid. If you try to play from the image the console will check online to see if the disk has been used elsewhere and ask you to insert the disk if it had. It could also occasionally challenge the user to insert the disc, more frequently based on usage if it thought the disc was a rental copy.
But instead they junked the feature. So now the console has a cache of the game but you always need to insert the disc to play it.
Scorpio, an upgraded Xbox One, is said to have about 3x the power of the PS4, 1.5x the power of the PS4 Pro. And 5x the power of the Xbox One, which it has to be compatible with. Scorpio software must run adequately on the Xbox One despite the huge power gap.
It wouldn't be the first time Microsoft have gimped specs between announcement and release. When Kinect was called Project Natal it had an onboard CPU/DSP that could do motion tracking of 4 people independently, track fingers & hands, even facial expressions. Then they decided to do all the processing on the 360 instead and the thing could barely recognize a person flailing their arms in an exaggerated bowling motion.
Microsoft might take a look at the PS4 Pro and decide there is no reason to exceed it in performance in any substantial way. If games have to remain backwards compatible with the XB1, then perhaps there are limits on what they could even do with the added compute power even if it were available to them.
Whether that continues when "Project Scorpio" turns up in some form remains to be seen. The PS4 Pro and PSVR didn't exactly take the world by storm so perhaps there is an opportunity for Microsoft to seize or maybe the same pit to fall into.
Very few people want to watch Netflix movies in only one half of the "full" screen and nor do they want to watch a movie with a big line from a hinge / bezel either.
Unless Microsoft is going to wow everyone with a bendable screen that folds in half (unlikely), it'll probably suck as much as Sony's effort did.
And yes you can make a virtualized image of your own but it's not one supplied by Microsoft, configured and performance tuned for that purpose.
Unless your name is Donald J. Trump, in which case your casino loses money:
And there's a growing suspicion that it might be because they were little more than money laundering fronts for domestic and foreign crime cartels. Indeed his casinos have been repeatedly fined for such activities that were discovered and doubtless that's the tip of the iceberg.
I'm sure there are engines and suchlike that target mobile platforms but guess what? That means the Switch occupies the same tier as the phone in your pocket. That'll be great if you want garbage free-to-play games and so on, or crappy 3D games. It's not so good if you see someone playing Battlefield 1 or Far Cry 4 on their XB1 / PS4 and you're reduced to some shoddy shooter-on-rails port.
You're aware that Nintendo has never been in the game of cutting edge graphics, right?
That wasn't the point I was making so let me state it more plainly. Making a game that targets the XB1, PS4 and PC is a no brainer. That's because these platforms are close enough (i.e. parity) that the tools, assets, middleware, developers, designers, testers, budgets and marketing can be shared across platforms. The cost of writing a game exclusively for the PS4 might be 10 million but the cost of adding XB1 and PC might only add another 5 million because the work is shared. If the Switch is NOT at parity then the obvious outcome is that it will cost more money to develop for that platform than it would otherwise. And if there is a smaller userbase that will hurt sales. And as we saw for the Wii and Wii U it means devs won't bother to support the platform at all, or will set their sights lower and churn out shovelware.
You don't need the power of PS or XB to make good games.
No you don't. But let's reduce this absurd argument. You don't need the power of the PS3. You don't need the power of the PS2. You don't need the power of the Playstation. You don't need the power of the Sega Genesis. You don't need the power of the NES. You don't need the power of the Atari VCS. Ad nauseum. We could make a fun game from a dot on the screen. Hell, let's have fun with a stick and a hoop. It's not a strong argument to defend a console with poor specs. A console is not rendered more "fun" by having gimped specs. Especially if you get to enjoy lots and lots of shovelware as a result.
If all else fails, lower your standards.