See I'm having a hard time accepting this. When the very talented MS engineers designed Xbox One. They must have sat down and worked out what kind of performance was required to create a 1080p machine. I really don't believe they sat down and designed a 720p or 900p machine.
At this point. I'm blaming a immature XDK and time starved developers trying to hit a launch deadline.
They didn't have the luxury of designing a games console to their own personal specifications. The suits at Microsoft laid down some objectives they had to meet which compromised it for gaming:
Sold at a profit at $499 with Kinect.
8gb ram goal set in 2010.
Windows 8 ecosystem and multitasking
The first issue is that the PS4 probably had a higher budget for the console itself as it is sold at $399 at a loss with no camera, this really took out a lot of the wiggle room the engineers had.
The second point is that it must have 8gb ram minimum, this is so that the OS can have 3GB available.
The multitasking and windows 8 ecosystem are responsible for the guaranteed 8gb RAM as well as the GPU reservation.
When designing the system, the first thing they had to put on the design board is Kinect hardware, meaning both the Kinect itself and the Audio block in the XB1, both of which are of course expensive. The second thing on the Design board is the must have 8GB ram, which gave them 2 potential solutions:
Unified 8GB DDR3 Ram.
Split ram pool 4GB DDR3 and 4GB GDDR5.
The second solution is not great because a) it costs more to have GDDR than DDR and we already know, they must be making a profit on day one as well as having Kinect and the audio block, also as shown by the PS3 a split memory architecture can be difficult.
At this point they already have their memory layout and sound processing, but they still need an APU, but they're already playing catch up in regards to bandwidth, they need a solution to this and that solution is embedded ram, so they need to make another decision, esram vs. edram.
They chose esram, this could be because it takes less steps in the fabrication process and they may have had difficulties with the x86 licensing and having it produced in one of these foundries, so it may not have been a choice by Microsoft, or it may have been chosen so they didn't have to put it on a daughter die, or plenty of other reasons but mainly $.
Now they are left with esram, it takes up around 3x the space as edram so they have to Balance the amount of esram with the size of the APU. From a financial perspective the maximum size of the APU was set, they decided to spend their silicon budget on 32mb esram, 1.3Tflop GPU and an 8 core jaguar. 32mb isn't a great amount, but any more than 32mb and the GPU or CPU would have to be cut down. so they had to come to a
balance between esram GPU and CPU.
If the engineers from both companies sat down with the same budgets and the same goals, they'd likely design the same system. Microsoft engineers did a very good Job designing the system to meet their goals, I can't think of anything they could change to make it a better games console whilst meeting their goals from the suits.
....end of the day "its the games that matter"..as cliched as it sounds but no matter how powerful a system is, if it hasn't got the games, then its just glitter, not gold..
Unfortunately for you this is a spec thread and unfortunately for Microsoft, Sony has a vastly superior first party.