Sony and Microsoft might be taking similar approaches, but for entirely different reasons. It looks like Andrew said that the Neo is for hardcore gamers and Scorpio is for similar reasons, but more specifically for people that want 4k console gaming and VR.
I'm skeptical if 4k or VR is going to be a big thing, but right now it seems both the newer versions of the consoles with be held back by the current versions of the consoles both the companies probably expect and/or want that. Therefor the games will be "modern" games with most likely higher resolution and in some case higher frame rate. Some developers will use the stronger consoles to make their games to have superior graphics with better graphical features, but they will be in the minority.
To me it seems like MS wants to jump in and take full advantage of the newer trends and gaming tech, being the console to get in on them. It has little to do with iterative consoles as some of us thinks - the newer version of consoles being fully taken advantage of with not just better performance cross the board, but with newer tech, and more features - instead the iterative consoles are mostly for newer tech and not for the games themselves necessarily. Consoles are stagnant so they might not be able fully take advantage of newer technology, but not technology in the sense of better CPUs, GPUs, RAM, etc, but tech like motion gaming, 4k, HD, VR, etc. If anything this might resemble MS and Sony doing what they did last-gen with motion gaming.
I think Sony and to some extent MS probably know that these consoles won't have a huge adoption rate and that is probably the point, they aren't necessary designed to completely replace the current versions. If they really wanted to, they would make sure that Neo and Scorpio offer different and superior experience not just with performance or graphics. I actually think that this might help extend the current gen , because releasing another console right after Scorpio will just eat up the audience and make it irrelevant in MS case and Sony probably won't be in a real hurry to start a completely new gen when everything is doing fine for them.
If VR( especially that) and 4k don't take off much, plus the new consoles not selling very much. I expect everything will go back to how the way they were, but the companies making far stronger consoles to last long term.