I'd scrap a low-tier console or turn it into the mobile version. The strength of consoles has always been having a single platform that developers could tune their games for to eke out every last drop of performance.
Microsoft seems like they're going to try to own that platform but let anyone make hardware that supports it. This might be initially successful in that they pass costs on to third parties, but eventually it turns out like it did for Apple with the Mac clones.