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Arkaign said:

You can be damned sure Sony would have undercut Microsoft during the worst PS3 years if they hadn't had such insane BoM costs.

And yes, XB1 should be $349 with a game to jump-start competition. $449 with both Kinect and a free AAA game wasn't enough to get things going, what makes people think $399 with no kinect and no game is going to be earth-shattering? It gets even worse when you consider that for many months towards the end of the year, it's nothing but multiplats which will be better on PS4. Rinse/repeat.

Still, Phil shows he has actual balls and ears, so I wouldn't rule out MEGATON news in November unless the NPDs really turn around dramatically. $299 with a game! That would blow people's actual minds.

MS is not looking to go into the red to jumpstart competition.  If you go by all of their moves so far, its clear that the Xbox division needs to turn a profit and be self suficient.   399 with no games isn't earth shattering, thats why its not the big reveal at E3.  Instead its a move to get those people off the fence where Kinect was holding them back.  MS is looking to gain momentun and solid sells, not trying to put themselves in the red if possible.

If better resolution for games was such a big issue, we would not even have this conversation about the X1 or PS4.  The PC wold rule them all.  There is a lot more that goes into people buying process and higher resolutions is probably low on that scale.  Anyway time will tell how things turn out.