They are still the number 1 selling console and are constantly adding to their margin every month and I don't think they care about winning every region every month as long as long as they maintain their sizable global lead.

PS4 will be $350 sometime in 2015

I'm surprised some people think Sony will stay at 399.

E3 price drop to $349 and on Black Friday deals will be $299

I think it really depends on what happens in the US market between January and May. If Xb one consistently outsells PS4, because they make the $50 price cut permanent, which they will, then I see Sony going the whole hog and dropping to $299. They will do this because they know MS will easily respond to a $50 cut with another cut of their own to $299, and that will leave things in favour of xb one. In fact more in favour of xb one since $299 seems to be a mass market price, which means MS getting there first and having a holiday at that price point with Sony still in the >300 range probably means an even bigger sales advantage. But MS is highly unlikely to cut below $299 so if Sony shoots straight for that figure, MS will merely price match and that will almost certainly favour PS4.

However if PS4 can regularly outsell xb one with a $50 price difference I see a cut to just $350 as likely, but with $299 specials on Black Friday.

A 1TB sku would seem like a good bet too, at $399.

$349 500GB + game

^^This,
However i still feel like Sony would want to milk all the profit they can from the console, so a 350 after E3 would be logical, and according to microsoft the holidays are all that matter so sony will dip into $299 territory 4 months later in november for those holiday sales. While i agree this would be unwise, it just seems like something the profit hungry sony would do

It makes no sense for them to drop the price twice in one year. And like Binary said, dropping to $350 is redundant cause MS would just respong with a $299 drop which will agai put tehm at an advantage. Sony will be better off holding on for as long as they can and do a major drop to $299 by november next year while anticipating that the XB1 will also be at $299.

That way they are at even footing, however, I believe that MS will drop to $299 and still add a game in the box next year. I doubt sony will match that. MS will never again try and sell at the exact same price with the PS4. If 2014 has shown them anything, its that they cannot compete with teh PS4 at the same price. They must always come in cheaper.

I think they should do a barebones model sold at the lowest price possible. So standalone PS4 with 500GB HDD and no game for $299 if they can get the dev costs down low enough. Then do one for $50 more with a bigger HDD and a game. ANd then an ultimate bundle for even more but with more games or the camera.

500GB HDD @ 299 and 1TB HDD @329.