Yeah, no. I don't see what's so horrifying about paying an extra $3 a month over two years (vs a $500 console + 2 years of Live) when you're going to be paying for online regardless. I think it's a great strategy from Microsoft, if anything.
They've already proven that they can make a subscription model work, so this could help nudge a lot of people into upgrading earlier through a lower cost of entry. The only way Sony can nullify that decisively is by offering a PS4 model much cheaper than the "unlocked" 720 price--something I doubt they'd can afford to do, given their shit financial situation and the specs/features we've heard of. And I say that as someone who bought 2 PS3s (first one broke) specifically because I have no interest in paying for Live.
Nor do I expect them to not cut prices if this model works. Even if the PS4 isn't super cheap right away, it will come down in price over time for sure. MS will have to cut prices in kind if they want people to keep getting the more profitable subscription model.
