What if PS4 was $299, but took a $200 loss?

[justinian]

I doubt Sony would go that far, and for the record I don't think MS would either.
Sometimes it takes a good slap in the face to wake you up. I think Sony had enough of these slaps over the last few years to be wide awake when it comes to the PS4 if not anything else.

As for those saying MS could pull a similar $200+ lost on each console to hurt Sony is madness.

First and foremost MS is a business. It's aim is to take your money. Not to please it's fans with a cheap console and take a heavy loss. That's the reality of it.

The days of selling 130m+ consoles to recoup losses on hardware through software as was the case with PS2 now seems to be long over.

Services like Live and PS Network can help although I don't see as many Europeans paying for these services next gen but that's speculation and totally another matter.