MOVED: will 7 days to die owners on console get the update or be screwed into buying another copy?

If you already own the current console version, There'll be a discount for the new version.. No info currently on how big of a discount, TFP is negotiating/in talks with Microsoft and Sony about it still.

Given that TFP have phrased it as a 'Discount', though, it's unlikely to be a 100% off dealie, so yes, you'll have to buy the new console version.

Some info on the 'Why' of it:
https://steamcommunity.com/app/251570/discussions/8/6297799348957653799/#c4355621052304479251