First of all, no random teen is going to buy a $400  PS4 on their own. Even if a random teen goes and buys one, there's probably a screen after you input the code saying that you confirm that you are 17 years of age or older or that your parents approve of you downloading and playing this game. 

This whole M rated argument is redundant (almost). The majority of PS4s sold to anyone under the required age for an M rated game will have already bought or have already been bought a PS4 at Christmas. With three big M rated games coming out, and a nostalgia driven adventure game (Grim Fandango), this is the PERFECT time to offer a free M rated game with the PS4. It gives people an incentive to buy a PS4 for Evolve, The Order and Bloodborne. I wouldn't mind betting that this is now going to be an annual strategy and next year they'll back on another game from 2015.

I believe Sony will do the same in Jan 2016, with another great game.  Possibly at a lower price. 

Yeah, that's what I meant by 'another game from 2015'. I could have worded it better. I think the price drop issue is still up in the air and depends entirely on how well they do coming up to the Christmas period. They will not drop the price just because MS do, they've already demonstrated that, so if they think they can sell as many as they manufacture they'll probably stick with the bundled games approach. They may even wait until quarter two in 2016 before they announce a price drop, but like I said, they'll have targets and projected sales and it will all depend on if they feel they can meet those projections at the current price. They're in a pretty damned fine place at the moment.

Yeah, I agree. If sales keep going so good, Sony won't lower the price, not before Sept 2016. PS4 is gonna have an insane value by Holiday Season in Nov and Dec 2015, and it will be simply enough for Sony to bundle PS4 with another great game starting from Jan 2016. Then, in Sept 2016 we will most probably have a price cut, $299 with the Slim Model ? I think so ;)

Do we know what game are 'likely' coming for the PS4 during the holiday season? I know there's possibly Uncharted 4 but I don't really know of any others. No Man's Sky? Media Molicule's game?

Naughty Dog will do their best to release Uncharted4 in Nov/Dec.  Don't know about the MM game, have no idea when it will be ready.  E3 will tell us a lot of things though :)

Yes, hopefully E3 will have some surprises. I'm just not certain whether Sony will want to match MS this Christmas or they'll just pack the games in equally across the year as they did in 2014.

Is it digital download or physical copy?

$20?  So it's not worthless then. 

Well done for proving yourself wrong.