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I think it will make something of a difference, though maybe not as much as the PS3 vs 360 launch prices. The good news for MS is that a $499 price point won't carry the long-term stigma of $599, and on top of that they've got the Kinect to help justify the price to casual gamers and families who are interested in TV-related offerings.

The bad news for MS is...well, it's that the PS4 is $100 cheaper, and in this constantly stagnant economy, getting a console for a cheaper price is a big deal. I personally wouldn't be surprised if we see a price cut for the X1 in 2015 if sales aren't satisfactory.