Project Scorpio - Update or Next Generation?

I don’t understand why they are pushing this like a new Console? I first got the impression that it was like a kinect peripheral to use VR (Oculus Rift) but it sure sounds like it is the next generation console but then they say it is going to play Xbox One games upscaled like the S but with VR compatibility. I’m confused and I feel it’s pretty fast if the next generation consoles start coming out next year - if that is exactly what it is then again???

I think Microsoft are trying to catch up in the console wars, whilst project scorpio might just be an upgrade it wouldn’t surprise me if they are already wanting to start a fresh with a next gen console so early.

Please use the search function before creating duplicate threads.