Back in late 2013 when both the Xbox One and PlayStation 4 were brand new to the gaming scene, we recommended taking a wait-and-see attitude before diving into the new generation of console hardware. Even a year ago , we still said both consoles felt a little too expensive and a little too lacking in must-play exclusives. There was no need to run out and buy immediately.

Today, the “next generation” of consoles has been the “current generation” of consoles for more than two years, and it’s finally time for those who’ve been waiting to make the upgrade. Competition drove both the Xbox One and the PS4 to sell for $300 with included games this holiday season, prices that are likely to persist into 2016. Combined with an increasing lack of last-generation ports for many big-budget games and continuing improvements to both the libraries and features of the new consoles, there’s plenty of reason to take the plunge on a new system.

But which new system should you choose? A lot has changed in the battle between the PS4 and Xbox One since we last took a comprehensive look at the market, so here’s where things stand with the latest battle in the console wars.

Everything old is new again

Microsoft’s surprise E3 announcement that Xbox 360 backward compatibility was finally coming to the Xbox One was probably the biggest coup of the console gaming year. Sure, when the feature finally launched in November it only worked with a little more than 100 games . And those games can’t be purchased directly through the Xbox One just yet. And if you already own games for the Xbox 360, it’s not reallymuch of an inconvenience to plug it back in if you really want to play the occasional game of

Still, the addition of even limited backward compatibility says a lot about Microsoft’s continued commitment to improving the Xbox One. This is a free feature that no one really expected Microsoft to provide this late in the game, and it adds some real value to new and existing Xbox One hardware. Microsoft has also committed to expanding the list of backward-compatible Xbox 360 games going forward, and the company now gives gamers with Gold memberships at least two compatible Xbox 360 titles each month, helping players easily build a library of last-generation classics.

That progress stands in contrast with the PlayStation 4. Sony’s solution for PS4 backward compatibility has relied on PlayStation Now, a streaming service that lets you play select PS3 games running on remote servers. After launching as a ridiculously priced beta last year, that service finally introduced a feasible subscription program early in 2015. The list of available PlayStation Now games has ballooned to 200 titles in the last year, while the cost has dropped to under $9 a month (for an annual subscription), providing a pretty good value for the money. Our testing showed surprisingly good streaming performance, too, especially with a good wired Internet connection.

While this is a great new way for PS4 owners to catch up on the parts of the PS3 library they may have missed, it’s pretty useless to loyal Sony fans that already have a collection of PS3 titles. Those discs and downloads still won’t work on a PS4. Similarly, earlier this month Sony made a handful of PS2 titles compatible with the PS4 through emulation. Don’t expect to put your old PS2 discs in your new system, though; those games will only work if you buy them once again through the online PlayStation Store.

Both backward compatibility models have their pros and cons, but we have to give the edge to Microsoft. The Xbox One provides a much more flexible system that lets users get value out of an existing library and out of thousands of cheap used discs that can still be easily found secondhand.

Microsoft piles on the system features

Outside of the new ability to play old games, Microsoft showed a lot more effort upgrading the Xbox One experience on a system-wide level this year. The new ability to stream Xbox One games to a Windows 10 PC over a local network is a nice bonus feature, and one that worked pretty well in our tests , especially if you have a wired connection throughout your house. If you have a roommate, child, or partner that's constantly hogging the TV when you want to play, now you have an easy way around the problem. The Windows 10 Xbox app lets you connect to your Xbox friends without having to start up the console.

(PS4 owners could already get similar in-home streaming if they own either a portable Vita or a cheap PlayStation TV set-top microconsole. That’s nice if you have or want either of those pieces of hardware, but Microsoft’s setup is more convenient if you already have a suitable Windows PC sitting around the house.)

Microsoft also unveiled a brand new system-wide interface late this year. The new setup feels a bit faster than the old Xbox One menu, making it easier to find many functions without shouting voice commands at the now-optional Kinect microphone. The small changes really shine in comparison to the PS4 interface, though. Sony’s system still arranges all your apps in one big, annoying line and buries many settings in a confusing list of dense text menus.

Microsoft has also made a few tweaks on the hardware-side this year. New controllers now sport a built-in standard headphone jack of the kind that PlayStation 4 owners have been enjoying since 2013. Microsoft also launched the Xbox Elite controller , which packs a number of welcome improvements into a pricey $150 package.

Even if you’re not willing to shell out that much money on a controller, the Xbox One now lets you remap controller buttons on the system level, a nice addition that can make many titles more comfortable to play. And for you cord cutters, Microsoft now offers an over-the-air tuner that lets you use the system’s impressive media functions with free terrestrial TV signals. Over-the-air users will also be able to use their console as a DVR starting next year, adding even more value to the media side of the box.

On Sony’s side, the only really important system-level change to the hardware was the addition of a suspend/resume function that Sony first promised back in 2013. It’s nice to see Sony living up to that promise, but it hardly serves as a major attraction at this point. When it comes to keeping hardware and system software fresh and updated, Microsoft showed a lot more effort in 2015.