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tuscaniman99 said:
Just drop the price with Kinect to $399, eat the losses and totally dominate the US market share.

Even at $399 they wouldn't dominate the US market.  For one, Sony has made a lot of new fans (or  maybe more accurately, won them back) because of their stance against DRM from the start.  And some that are going to buy a One are still saying they are buying a PS4, first, then a One.  Finally, and quite importantly, MS is going to be having supply issues for at least the first 6 months, if not more.  Sony, on the other hand, are going to be pumping plenty of PS4's into the marketplace.  For many who want a next gen system in the first 6 months - 1 year, the PS4 and Wii U are most likely going to be their only options.