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Joelcool7 said:

I think Sony will launch PS4 at about 400-450USD. It'll cost about 600USD to manufacture. Sony seems to like releasing hardware at a loss. Keep in mind Sony's high prices have never translated into high profits, the prices are usually under the cost of production.

I expect Sony to release a really powerful machine much like they did with the PS3, they will probubly use cell technology and other technologies that were developed for the PS3. Upgrading these technologies for the PS4. I suspect PS4 will be 2-3x the power of the PS3 instead of larger digits like PS3 was compared to PS2.

What's keeping Nintendo and Microsoft from releasing a high priced console. Well first off is the higher the price the more you risk. Look at older high priced consoles, The Atari Jaguar or how about 3DO or the CD-i, all were expensive consoles and all failed miserably. Infact I don't think the most expensive console on the market has ever won a generation. Infact other then PS3 not a single most expensive console has even lasted a full generation.

Nintendo is always about profits, they will never release hardware at a loss. According to EAGames and Sega in 2006 the Wii cost about 75USD to manufacture. It launched at 299CAD and I believe 275USD. Thats a 200$ profit on every unit sold. GameCube was also launched at about 50USD profit per unit. The DS, GBA , GameBoy all lacked power in exchange for lower manufacturing costs and higher profit margins. The only way we will see a 600$ Nintendo system is if A.Nintendo controlled about 80% of the market prior (Which will never happen) in other words Nintendo needs to know 110% that they will maintain high market share. B. Nintendo will need to be manufacturing the thing at about 400USD which will translate into a super power since Nintendo knows how to make cheap but reliable hardware. In other words Nintendo would need to be even more confident then when they launched the 64, which is not going to happen.

Microsoft launches at a loss every generation much like Sony. Infact the origional X-Box 360 did retail as high as 600CAD. I bought my Elite for 650CAD at its launch. So that answers your question, considering the Canadian dollar is at par. But I don't think Microsoft will risk such an expensive indevour again, its just not smart they wanted to show the industry they could create a superior product, they proved to gamers they could deliver. Now is not the time to gamble again Microsoft will want to release a console they know will sell. I expect a 400USD console next gen possibly even 300USD.

I think all three competitors will go cheaper next gen, they all saw how much Nintendo made from launching Wii and DS cheaply, they all saw how the two consoles printed money. Both Microsoft and Sony will release cheaper consoles next gen, heck Microsoft and Sony may even for a start launch hardware at a profit or near to cost. I don't think Nintendo will be alone as the cheapest console or at least it will be alot closer then this gen!

You might have misread your sources, Nintendo had a 75 dollar profit in Japan (No Wii Sports bundle in Japan) and a 30 something dollar profit everywhere else.