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Just make great, EXCLUSIVE games and the system will sell just fine, even with a $500 tag. People are being to damn dramatic with the Xbox One's sales, even Microsoft. In the end, the Xbox One and Playstation 4 will probably end about even, just like the Xbox 360 and Playstation 3.

Also, the $500 price point is in place to not make a loss on units. 1 units takes about $471 to make if I remember correctly. Basically every price cut would result in losing money per units sold, something both Microsoft and Sony are trying to avoid with the Xbox One and Playstation 4.