Sony execs have been teasing information on their company's new device for months, while Xbox boss Phil Spencer took to the stage during his firm's E3 2019 press conference to announce that Project Scarlett will be released in the build-up to Christmas 2020.
Here then is what we know about each gaming powerhouse based on official details and rumours, and how they might compare.
Processing and graphics hardware
There's no doubting that each of the new consoles will be significantly more powerful than their predecessors, but by how much?
Only Xbox has put a figure on it so far. It claims Scarlett will be "four times more powerful than Xbox One X".
Indeed, when you look at their similar potential spec, the same could apply to both.
Sony has confirmed that its next machine (not named, but thought to be PlayStation 5) will run on an eight-core AMD CPU, based on the chip manufacturer's 7nm process. Its graphical capabilities will also run on AMD hardware - based on the Radeon Navi architecture.
While Microsoft is less forward about specifics, it has revealed that it is also using the latest chipsets and architecture from AMD for Scarlett. So we'll chalk that one up as a draw.
Considering both consoles are said to be using very similar internal hardware, it comes as no surprise that both Sony and Microsoft are quoting similar graphical capabilities.
They both say that their respective consoles will be capable of reaching 8K resolutions for gaming. And that they will be able to support 120fps frame rates.
One slight issue was pointed out by Forbes and sometimes Pocket-lint contributor John Archer, who claims that to reach such lofty heights, both consoles will have to sport HDMI 2.1 outputs. That standard is mandatory for 4K 120fps, let alone 8K.
Unfortunately, that will mean that you'll likely need a new TV to get the best image quality as only a handful of very recent sets support HDMI 2.1.
Either way, it's something that will affect both machines.
Storage and memory
SSD is where it is at with both next-gen consoles. Both will be adopting Solid State Drives for storage in order to speed up loading times.
PlayStation's Mark Cerny demonstrated that, because of the SSD inside a PS5 DevKit, a loading cut screen in Marvel's Spider-Man that usually takes 15 seconds on a PS4 only takes 0.8 seconds on the new machine.
In addition, the Xbox engineers behind Scarlett revealed that SSD is a game changer, literally. In the E3 2019 reveal video, they also said that the SSD storage solution can also be used as virtual RAM, thereby speeding up data access during games without you even knowing. That could put an end to slight stutters in open world games, for example, as assets load seamlessly in the background.
What we don't yet know is how much storage space each console will provide. SSD technology is extremely expensive, especially at 1TB and 2TB sizes. We expect, therefore, that both manufacturers will use a hybrid drive system: SSD for speed and caching, plus a more traditional HDD to bulk up the storage space.
At present, this seems to be relevant for both machines.
In terms of conventional RAM, only Microsoft has shown its hand. It said that Scarlett will utilise GDDR6 RAM, although is yet to reveal how much and the actual speeds.
Optical disc drives
Neither manufacturer wants to ditch the physical disc drive yet.
We don't yet know the exact format, but Cerny said that the PS5 will definitely retain a disc drive. Xbox's Phil Spencer said something similar about Scarlett in an interview with Games Industry.
Here's the biggest differentiator between the two consoles. At least, based on what we know so far.
Project Scarlett will be able to hook up to Microsoft's forthcoming cloud gaming platform, Project xCloud. It will therefore potentially offer thousands of Xbox One, PC and even retro Xbox games to stream over the internet.
The PS5, on the other hand, will likely support PS Now, Sony's own cloud gaming service that is already available for PlayStation 4. It's not as fully featured as Microsoft's xCloud on paper, although Sony has stated that it is investing time and money to build PlayStation Now into a better platform going forward.
Release date and price
These are probably the most important factors of all. And, we're not really in a position yet to answer them.
Price is impossible to tell at present, but we expect both machines to be near or above the £450 launch price of the Xbox One X when it arrived in 2017.
As for release date, only Scarlett is confirmed right now. It is coming "holiday 2020". We would hope the PS5 is also there or thereabouts as, traditionally, any next-gen console that launches first ends up winning the battle.
If they both become available at the same time, it'll come down to the games and personal preference.