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The PS4 was really over priced to begin with. MS were just fleasing the early adopters like they did in the rest of the world with the Xbox launch. You'd be mad to buy a future MS console within the first 6 months - 1 year of release.

After this big price cut the PS4 is still cheaper. They must be fearful of the upcoming PS4 release. Would have been stupid to have their flagship console more expensive than a Vita and a PS4 combined.