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I think Sony are very aware pricing is a big reason why they didn't well at the start of the 7th gen and will price the PS4 at $/€ 450 or lower.

I don't expect dev cost to see a huge bump. Contrary to last time in the 7th to 8th gen transition the way games are created won't change much and devs already are used to high quality asset creation and multithreaded programming and there are many different engines with powerful tools to assist them.