Do you think we'll see a PS4 price drop at E3?

[greenmedic88]

No. It's selling perfectly as is with current production rates.

There is absolutely no logical reason to increase production yields in the short term (which would probably require opening production in new factories) so they can sell that inventory under cost, only to cut production back to normal levels once sales have returned to previous levels.

What SCE should and most likely will do is cut the price by $100 to $299 after the first major hardware revision which will be cosmetic (new package/case) in addition to a reduced cost chipset and overall lower BoM. The current hardware revision going through the approval process sounds like a minor change that will be unnoticed by the consumer but should slightly reduce the initial BoM for SCE. Not enough to warrant passing the reduced cost to consumers.

But it's not unreasonable to expect to see this $299 revised PS4 in 2015.

In the meantime, SCE really has no reason to do a minor price cut just to make the PS4 look like a better value than the $399 XB1. Most of the public already sees the $399 PS4 as a better value than the reduced feature $399 XB1.

But we'll see. Once the $399 XB1 hits retail, we'll see how favorable the consumer response is. If it's fairly indifferent, we won't be seeing a PS4 price cut.