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SONY launching the PS4 at any price point above $399 would be insanely stupid. 

 Consumers are price sensitive and next-gen SONY won't the advantage of new technology to use to justify the value angle. Besides it makes no sense to give your competitors a chance to force you out of the market, therefore competitive pricing is only natural... (and Nintendo's Wii2 will probably be $249 or $299, with Next-box $399 at launch)