With speculations running high that Sony would soon be launching the rumored PlayStation 4 Neo, Microsoft might very well be forced to release an update to its embattled console, the Xbox One. After all, with the advent of VR gaming and its sales figures already lagging behind its Japanese rival, an update to Microsoft's console might just be what the Xbox One needs in order to beat its rival once and for all.

The Xbox One, released just days apart from the PlayStation 4, was largely considered inferior to Sony's console in terms of specs and features. Immediately after the two consoles were released, forums on the internet exploded with head-to-head specs comparisons, and unfortunately for the Xbox One, the PS4 almost always won the fight. Couple that with the fact that the PS4 is cheaper when the mandatory Xbox One Kinect is to be considered, and Microsoft's current flagship console was already beaten from the get-go.

Years later, the PS4 far outsells its rival almost two to one. However, with the upcoming release of the rumored PS4 Neo, Microsoft might finally have a chance at getting the upper hand in the console battleground.

Despite its inferior sales figures, the Xbox One is actually not a failure when it comes to the number of units sold. Hence, Microsoft is assured that the console has a pretty solid following. For Microsoft to topple its rival, the firm would have to make the updated Xbox One a console with not only formidable specs, but with also innovative compatibility features.

A key feature of the Xbox One update would be adding VR functionality to the console. With Microsoft and Oculus recently entering some sort of partnership, it would be a very good idea for the tech giant to take advantage of Oculus' VR technology and make it compatible with the updated console.

After all, rumors suggest that Sony is releasing the PS4 Neo to create a console that is optimized for its PlayStation VR headset, which is already far more affordable than mainstream VR devices such as the Oculus Rift. In pricing, at least, Sony's PS4 Neo and the PSVR are already competitive.

With the gauntlet thrown its way again by its Japanese rival, Microsoft now has the advantage. After all, the resources to make the Xbox One's successor are already at the firm's disposal. With competitive pricing and a compelling set of features, the new stage of the console wars might very well gear towards Microsoft's favor.