Seems like Microsoft is moreso targeting the Steam audience than going after Sony with all the hardward hype and specs.
I wonder if this is more a move towards the PC market and a withdrawl from the home console market.
I doubt it. The Steam Machines didn't exactly set the world on fire, and why would you get a Scorpio when you can get a PC which can be more powerful and has tons more games? I get the feeling this may be just one of those nice little perks, because I don't exactly see TV manufacturers racing to adopt this. It's a hard sell to them since most people won't even know its there.
I think it's probably a little of both. Of course Microsoft wants to get some of the console market share they lost to Sony back. They also see that Gabe Newell was able to become a billionaire by selling games through Steam to people using a platform they own (Windows). They want some of that market share too.
The reason someone would buy a Scorpio over a PC is because a PC capable of 4K gaming with high settings and 60 FPS is going to cost you $1500+. We don't know how much the Scorpio will cost yet but I think they would be crazy to make it more than $500-$600. Sure that $1500 PC will have better visuals and framerates but it's also a lot more money. The Scorpio will be a nice entry into 4K gaming for people who aren't willing to invest that kind of money into a PC.
I heard a pretty long interview with Phil Spencer on Podcast Unlocked. He mentioned that they still expect the Xbox One S to be the mainstream system that most people continue to buy after the Scorpio is released. He basically said that the Scorpio will be a niche console for hardcore gamers who want a 4K capable system. In a lot of ways this is the same niche group who cares about gaming enough to build a nice PC.
Obviously they are still very different platforms. The PC is much more open with multiple storefronts, mods, and the ability to edit your own ini files when you want to. I don't see many PC gamers moving over to Scorpio but it might convince current console gamers who are thinking about moving to PC for better graphics to buy a Scorpio instead.