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JEMC said:

Let's take a look at the launch prices of their latest cards

8800 GTX_  $599  >>> GTX 280_ $650 >>> GTX 480_ $499  >>> GTX 580_ $499  >>> GTX 680_ $499

Do you know what happened from the GTX280 to the GTX480? AMD was competitive again and Nvidia was forced to lower their prices.

If Msoft or Sony weren't competing, I'd agree that the price would be higher, but since they are competing, they will try to lower their price as much as possible. That' swhy inflation is not relevant in this discussion.


I'm not factoring in competative tactics, because pricing could go anywhere. I'm just using inflation to extrapolate new pricing. 399 doesn't make sense, it's still a posibility, however that console at 399 doesn't make a big jump (compared to last gen). Pricing en power are correlated, due to Moore's Law. 

So if 399 is true it will be a relative weak console.