I read this also, it was my understanding that the Xbox one S and the Neo are both mid level upgrades. The former has been confirmed as a UHD BD player, but i was under the impression 4k gaming would be for the next gen consoles. As for the neo, I've heard conflicting information. I'm not as excited by 4k games, as I am with more 4k content, especially in HDR10.
As it stands, the S is the cheapest UHD player about.
It's pretty much confirmed at this point that the Neo will support 4k gaming. According to the dev guidelines:
-Prepare a 3840x2160 display buffer, usually using an efficient rending technique such as "checkerboard rendering" when a 4K TV is connected
Sony is telling devs that games don't have to be 4k but would prefer a target of 1800p and require at least 1080p with frame rates that meet or exceed the existing PS4.
There are a lot of rumors flying around that devs are complaining about available memory and Sony may (although I find highly unlikely) update this plus with Xbox Project Scorpio (due next year) as a purpose built 4k gaming machine there is even more pressure on Sony.
DigitalFoundry did an "in theory" test of a PS4 running at 4k by simulating the hardware with an RX480.
PS4, PS Neo, Xbox One and Xbox PJ Scorpio are all supposed to coexist. The newer the system the better graphics and effects will be much like adjusting settings on a PC game to suit your hardware.
I can see where this is going, the writing is on the wall. Incremental console updates, yearly or semi yearly. The newer the console you have the better graphics you'll benefit from...just my opinion anyway.
I totally agree with you. Although I have a 4k TV I don't care about 4k gaming. To be honest I always found resolution to offer the least games vs performance (in moderation). A slight drop in resolution offers great gains in FPS with minimal visual effects. My example would be Xbox One vs PS4 where generally the PS4 has a higher resolution (1080p vs 900p) but I swear I can't see a difference when playing games. Like you I'd much rather have HDR10 and higher frame rates better textures, shadows, other effects, etc....