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What most of you people don't understand is that the Xbox One's APU is more expensive than the PS4's, despite being less powerful because of the higher trans and fail rate on the Xbox One's APU. The only thing that will make the PS4 more expensive is the 8GB GDDR5 RAM. However if Sony has a SKU without the PS EYE they should be easily be able to undercut Microsoft to at least $399 with a SKU with the PSEYE for $499.

So PS4 is able to be twice as powerful as the Xbox One and still be cheaper so long as it doesn't come with the PS EYE.

$399 sku and $499 sku.