I just have a hard time seeing the price being able to go back up.

The danger in doing a prolonged sale at a certain price is that consumers begin to expect that price. Aside from retailer specific sales or flash type sales.

We saw this last year with XB1's "Holiday Special price of 349.99". No way in hell they were going to be able to go back up to 399.

So here is what I think will happen. Price will go back up to 349.99 for maybe 2 weeks, with many retailers offer deals at 299.99. This way people who really care about the extra 50 bucks will be able to deal hunt to get one. Then, maybe 10 days out from Cmas the prices will go back to 299.99 across the board for the final push to Cmas.

Much of this will depend on supply. If supplies are becoming contrained they wont drop the price because will cause a shortage at a reduced price when you can meet demand at a higher?

We will see. Sony will likely go back to 349.99 and guage sales for 2 weeks. If they left it at 299 they would probably have a completely sellout situation by the week of CMas. I do expect to see another 299.99 push at a mimimum from 18-24 DEC (biggest shopping window of the year traditional retail). We may see an Amazon sales the week before that (people buy online less and less the closer you get to CMas.)

They both will go back to $349. As was said, MS cut the price of the 360 last month on Nov 2nd and it lasted until Dec 30th or something. This is a weekend only deal. Many BFs ago, MS had the 360 for $99 and Sony had the PS3 + 2 games for $199 IIRC, neither of which is its current price. Prices will go back up.

Sony? Yes.
MS? No. Cut happening in either December, February or March at the latest.

PS4 will go back to $350 and Xbox One will repeat what it did last holiday and in January.

Sony could even afford selling it for 300 with the new models

Sony: yes
Microsoft: depends on what they want, sales or profit. If they want sales they'll have to cut it.

I dont see Sony doing that at least.Sony is already selling consoles like crazy, and you need to see if the higher console sell but smaller profit is better than smaller console sell but higher profit.I think Sony is in a position that it dosnt need to lower the price again.Plus they already lowered the price to 350.Dont think they will lower another 50.Sony as a company is still in a not so good situation, sothey really need the profit.And they are the dominant console in the market.They dont need to make much effort to sell PS4s

After reading this post I have to agree.  Sony have a killer first 8 months next year both the West and Japan.  At 349 they will do great.  

Then next October they can do a permanent 299 cut across the board.  Sony are capable of sales and profit not just 1. 

They should go back to 400 and still outsell the other two combined. Just for the lulz.