I think the other reason the system was so expensive was the HDD. so imo both Microsoft and Sony next gen Need to have an sku where there is no HDD, and users just upgrade using their PS3 or 360 HDD. thus they can sell new units with HDDs and ones without to reduce manufacturing cost. and imo SSDs are too expensive to be implemented into consoles next gen - but maybe the gen after that.

Edit: and i agree with darth 400 is the best price - maybe 450 for PSplus, Move, etc. oh and the imo the PS3 will sell over 100 mil units, when the gen is over and other countries start buying it. but imo the gen is far from over so theres still a chance for the PS3 and 360 to do some major sales in the next few years.

the simple fact that it won't, blu ray, and cell processor were the technologies that made the PS3 so expensive, I can only imagine the plan from the start was to get these new technologies familiar in the industry so the next transition of game consoles will be an easy and less expensive one.

$600 price point definitely won't happen. PS3 only sold even this much because it had PS brand which was strong after PS2. If PS4 would start $600, it wouldn't even sell half as much as PS3 during first year and whole PS brand could be killed soon after. Playstation brand isn't strong enough anymore for $600 price point. Even PS3 only sold because of price cuts and brand, PS4 wouldn't be so lucky.

Btw. You can't use inflation when determining reasonable price for home console. Most electronic devices have become cheaper all the time so they haven't followed inflation anyway. For example TV's are a lot cheaper than they were only couple years ago. So most people might be used to getting cheaper devices than last year. Of course, sooner or later even electronic devices are starting to follow inflation...

yup, i think so too.

Nintendo may start cheaper, since i dont think they'll try to have a stronger machine than Sony or Microsoft,

While those two  are trying to keep it around 400$.

i'll say it like this

there not stupid! Sony saw there mistake and the other 2 manufactures saw it as well. MS is looking at the run Sony and Nintendo is having and comparring it to there own and saying: OMG i'm glade where not Sony but how can we beat Nintendo?

the most a console can release for next gen and not get shot down quick is $399.99

Sony may have been succeeful (or just dame lucky) enough to pull it of this time, but next time is a stretch.

good question though.

best explanation yet!

Your reasons would be good if they overall make sense but in the big picture no it doesn't make any sense. That doesn't mean that you have no sense or direction and I commend you for not lashing out but it wouldn't make any sense for Sony to launch at that price point.

Microsft and Nintendo are stopping.

QFT

Sony aren't Apple. They cannot sell $499 or more consumer electronic devices at a rate of more than 10M a year.