I think they regret it. For one important and obvious reason.
When they set the $399 price they thought they would be making a small amount of money on the console itself. At the very worst, should the dollar/yen have an adjustment, it mean they just break even - so once they sell a game they would be at profit.
Currently, they are losing money on each console. That's not a good thing for them right now. Not at all.
Sony has alway had great launches. Even the often maligned PS3 had a must better launch than the Xbox 360. Both are going to mostly sell out this launch. It would be much better for them to be making a profit.
And yes, a $499 price tag wouldn't probably have turn them too bad, as the early adopters would get it anyway. But it would I think kill them down the road.







