The first camera was rumored to cost a couple hundred. Microsoft couldn't sell such an expensive camera at the time. However with the new Xbox the camera should now be cheaper. Lets say the new Kinetic camera costs about 100$ to manufacture. Well keep in mind rumors have emerged that the next box controller will feature a touch screen similar to Vita. That controller will Costa Microsoft a good 40+$ to manufacture over their cheap 360 controller. Now keep in mind Microsoft is already said to have more power under the hood then Nintendo. How expensive would that hardware need to be to take a reasonable loss?
The WiiU is expected to cost around 400$ and barely break even. That's with less graphical power and a tablet controller cheaper then Kinect 2.0 and a Vita controller combined. The Next Box with the current specs rumored would likely cost 500$ and break even or even profit a small amount. But if you want it to he 10x the power were talking a 600$ price tag likely breaking even or a slight profit. Of course by using Cloud instead of an hard drive Microsoft could shed money off. A 500$ launch of such a console would be at a loss.
Now Sony without a tablet or camera. Could release a 10x more powerful console then 360 for a very reasonable price. Maybe 400$ this would leave Microsoft in the dog house with its Kinect and Vita controller console retailing around 450$ with less power. Nintendo would be at a slight disadvantage too graphic lovers would take the PS4 over WiiU.
But no I think Epic went to far. Crytek has released their next generation engine and it will run on all next generation consoles as has Square. Epic is shooting way to high with Unreal4 heck most power PC's couldn't even handle it.
Microsoft is smart they will put profits and a successful hardware launch ahead of keeping Epics loyalty. Sony on the other hand has a chance to get Epics support by launching a cheap enough console with Unreal4 support.
Selling at a loss is no longer a viable option for Sony. They have been bleeding money for years and the launch of a piece of hardware sold at a loss would not help that one bit. Based on the rumors I suspect Microsoft and Nintendo will both launch this winter with final kits available at E3. Sony will launch early kits to developers by E3 if they have not already done so. Sony will continue to week the hardware right up until its release in early 2012. Sony will have very little to hide at this E3. I suspect no tablet or camera just a kick ass new Dual Shock and mind blowing graphics. Also with Nintendo launching this winter for sure and Microsoft likely they will have shown their hand at E3. Sony will have a few months to adjust their final hardware.
Sony will show PS4 at E3. The question is how much they will show?
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
