It seems like third party games will all be made under the same base to work on the various "current" Xbox machines while MS 1st party games/exclusives will have different versions and/or shine more on the more powerful Xbox hardware.
Therefore, casual and more mainstream audiences will still receive a home console like experience for an acceptable price while the more hardcore gamers will go for the more expensive/powerful options.
I'm seeing this as adding more options to console gaming instead of completely moving away from what many people like about gaming consoles (simplicity, convinience, not having to worry about upgrading in less than 4 years, etc.).
As long as they stick to releasing models every 3-4 years with each model being supported for at least 6 years (the length of a gaming gen), with modern games being able to work on the relevent models (similar to iOS apps across various iOS devices) then I wouldn't see the problem.
Add-on parts would be bad in my opinion so hopefully they will avoid that.
Overall, if you would have told me this 2-3 years ago then I would have definitely considered this news to be going down the same path as Sega. Microsoft's current Windows/Xbox ecosystem push though is why I feel differently since games will be able to work on various platforms (instead of devs having to make a game for each box).
it is amazing how quickly you came around this idea now that ms is hinting at doing it. here are some quotes for reference when you questioned my idea of a ps4 premium and even calling it bad ....
"Again, you are talking about a different industry within the tech world. Game systems don't follow the same model that cell phones do and the majority of consumers are used to having their console be relevant for 5+ years.
Easier ports/connectivity in a new model is fine. The newer model running games notably better though would cause backlash especially with how easy it is for tech comparison articles and videos to spread (social media). People with the older model will feel screwed since they thought the system would follow the same model as previous consoles (with many people putting good money into the console via game purchases due to that).
This would be bad. There's a ton of current gen only games coming out, therefore causing people to buy current gen only consoles now. We are getting into the peak of the PS4 and Xbox One's life in terms of their game library. People who just bought a PS4 would be very upset if there's an announcement for a newer model that has more power just a year or so later.
Bad examples. Nintendo has been doing remodels for their handhelds for a long time (more than 10 years) and the Elite is just a controller (there has always been multiple options and prices for controllers). It's also a controller that will work for all Xbox One users and not just people who (say) bought the system this year.
Bad idea in my opinion. I get why people (especially the more hardcore) would have no problem with laying down the extra money in ditching their old PS4 and getting a "PS4 Plus" but a new model like that would create too many questions. "What model is best for me?", "Should I even put the time/effort into making features for me game specifically for PS4 Plus if the majority of people are on the regular model?", "What's the difference? What games make better use of the Plus? Are they games I'm even interested in?", "Is my old system useless now?", etc.
Again, all questions similar to what people were saying in terms of SEGA products during the middle of the '90s. The home console space will never be ready for this. There's too much of a foundation/expectation for a successful console getting top of the line support for at least 5 years before it gets outdated by its successor."
link for conversation where there are many that ridiculed the idea of an upgraded console
http://www.neogaf.com/forum/showthread.php?p=188973578&highlight=#post188973578