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I am gonna get flamed for this but I have to say it. I like Pachter. It is obvious that he isn't much of a gamer, but when he talks business he makes sense, to me at least. The only minus I would give him, is that his views are some times a bit US - centric. Other than that, more often than not, I tend to agree with his assesments.

To the point. Sony is basically pulling a 360 with the PS4. They put the best hardware they could inside the box, and kept the price low, just enough to break even. It is the PS Plus subscription that will be pulling the profits for Sony. From a business perspective, this is a brilliant move. People will be lured by the low price point of the console, but in the long term, they will be spending more due to PS Plus. Sony didn't come up with this. They are simply copying the 360 model. What baffles me, is that Microsoft, the guys who originaly came up with this model, are now royally screwing their next product and leaving the market wide open for their competitors.