The PS3 has sold an amazing amount of units for a console that started off initially with a price of 600$! Already it has sold 40 million and it has one more year until it hits the 5 years on the market. Many people (not calling anyone out here) doubt the PS3 would sell as much as 40 million in such short amount of time. Some even doubt it would sell 40 million LTD. But the PS3 has, and its looking to pass the SNES, the first place consoles in terms of sale in its generation.

So my question to you, VGchartz community, is this. What is stopping Sony from making the PS4 launch at $600? Imagine the amount of profit they can make if the console costs 400-500$ to make or maybe even less? Sure, the inital sales would be VERY low like the PS3 but the PS3 has shown price cuts and software will make consumers see value in the cheaper product. Sony might remain at 3rd place again in the console race, but they would make enormous profits. It is more easier than trying to overtake Nintendo or Microsoft's console next generation as well.

But then that begs another question. What is stopping Nintendo and Microsoft to release an expensive home conole as well? If anything, this generation shows you can start off with an expensive price for your home console and continue to sell good amount if you can price cut, redesign, or have secured a loyal fanbase or consumer. Could the next generation be the most expensive generation we face so far?

I don't really think they care more about profiting rather than winning market share at this point. They can try and profit all they want but none of it matters if they have no market share to back up that kind of price. Even if they did, the same thing would occur again and that is just too risky. They are probably going to play it safe next gen.

just make a cheepo gimped version for all the cheepskates. 

i think ps4 will launch for $400. That seems to be a good price point especially if sony is not having  ahuge upgrade from the PS3.

That would be the stupidest thing to do. Sony's relations with developers would get pretty bad considering there wouldn't be a whole lot of people buying it at that price point meaning very little sales in terms of software as well. Look at how bad the PS3 was doing software wise at the start of the generation. It took forever to get over 5 games to sell one million. Another result would be MS gaining massive momentum in America and UK and how would Sony fight back if it lost EU? Sony has learned hard that they need to balance sales with profit and I see them releasing PS4 at a good price point, not this $600 crap.

i doubt sony would make the same mistake again, ill admit i didnt think the PS3 would perform as well as it is now but it surprised me... if the do sell the PS4 at a high price they would have to make sure it launches with a wide variety of games so that it will appeal to more people.... even then i think it would be a bad move

Direct answer to thread title:

History.

We cannot deny their success in breaking records as the best 3rd place (currently) home console in the video game industry as of now. They may have fallen from selling over 100 million LTD from last generation but they should be able to hit at least 50 million before the next home console hits the market. Would developers really be mad at PS4 for its high price? Many developers stated they wished to continue supporting the PS3 until its 10 year life span is up. That's plenty of time to support the PS3 and PS4.

They had to get down to $400 the first year or they were going to be dropped by developers.  Hopefully they stay at the $400 price point at the start.

Sony doesn't care about how many 'records' they break as a third place console. Sony wants to be number one and the only way to do that is to launch at a $400 price point or less. I'm sure Sony would rather have 50 million consoles in it's first two years rather than 50 million consoles after 5 years. Many developers will continue support not because the PS3 launched at $600 but because it is now at a good market price even after enduring a couple of years of terrible sales both hardware and software wise. Sony doesn't want to endure those years ever again so for you to predict that is just nonsensical.