What's sad is they could have actually put the development budget to better use and made the system a more high end affair but they chose not to. The contracts to co-develop and customize what essentially amounts to last year's COTS(Common Off The Shelf) sub-$500 mini gaming PC enough that they can sell it as a wholly propriety system is incredibly expensive. I don't doubt that at all since it's losing them money left and right. It's much easier to up a game's resolution than say a movie or tv show thanks to the amount of infrastructure needed to get those other ones working. It's annoying as gaming is one of the easiest scaling forms of media, resolution wise. The previous gen pushed high definition in a standard definition world, I can imagine they very much aided the sales of HDTVs, which in turn made them cheaper. But that doesn't help to move the industry forward as a whole.
Sure one could always argue that they targeted the average user, who won't have a 4k tv within 4 years and might not have a 1080p one now.
They can barely even manage 1080p, 1080p is such a mainstream resolution now, and in PC gaming is steadily being replaced by higher ones (although still a long way to go there according to Steam's figures). Sure they're much more capable than the last generation are now, but 4-5 years down the line they're going to be a joke. Thing is, the current consoles really aren't very powerful.
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