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arcane_chaos said:
it does to an extent:

#1 it will always look appealing to the casual gamer... say if they're only into maybe the big 3rd party titles then why pay $100 more for the XB1 when you can get the same games on the PS4 for $100 less(depending on the confirmed models)

#2 it usual gives the the cheaper console more leverage for years to come; say if MS drops the price of XB1 to $400 then Sony might be able to counter with dropping the PS4 to $300

Sure, but with MS in a much better financial position that hurts Sony more. MS benefits by selling higher (likely at a profit) while Sony is selling likely at around cost or a small loss. PS4 has more expensive memory and GPU so simple addition of Kinect doesnt mean costs for Xbox One is higher.  In the future estimates will come out and I believe based on the components that the PS4 and the Xbox One will cost about the same to produce.



Its libraries that sell systems not a single game.