Im not much of a gamer (ironically I make games for a living) but I made a bet with my kids that if the Detroit Lions make the playoffs this year I’ll buy them a system, and its looking like almost a lock to happen, so I want to get in on some Holiday deals.
This is their first non-Nintendo system so I’m a little lost on which way to go at this point in the generation cycle. For reference they’re 7 and 9 year old boys and are gonna be new to gaming that isnt based around crafting or Italian brothers. (i made them use my old NES, then SNES first, then got them a Switch a couple years back)
What console your friends have is definitely the way to go if you’re going to be playing multiplayer games. Your kids are pretty young, so I’m not sure if that’s a huge issue yet.
Beyond that, I’d recommend the Series S/X for Gamepass. You said your kids are new to non-Nintendo systems, so there’s probably a lot of games they/you will want to play. In that scenario, the subscription services are the perfect option. Gamepass is simply better than PS+ Plus Extra. One of the things it does better is diversity, which your kids will appreciate coming from Nintendo.
Either way, I don’t think you can go wrong. Fist party output has been abysmal for both Sony and Xbox so far. Third party is where it’s at.