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Protendo said:

PS4 is in greater shape for a price drop since it already had cost saving revisions and GDDR5 has had significant drops (especially after the shortage has been taken care of) in prices since launch. Meanwhile Esram prices will remain stagnant and DDR3 prices continue to rise.  DDR3 prices are rising so much that we have had rumors of future Xbox Ones using DDR4 (which will cost a lot more than the initial Xbox One units and you wouldn't get any performance gains as they would make sure they have the same performance as the current DDR3 for compatiblity reasons). I would say the PS4 is in much better position for a price cut.

Yes obviously Sony is in a better price cutting situation. Not just that the PS4 costs less to make than an XB1, but also because of how well its been selling. They have made significantly more from hardware and software sales so they can justify a price cut. Thing is that they don't need to cut the price until they can see a decline in sales. Ms on the other hand doesn't have a choice. They have to cut their price, Or not they stand to enter "also ran" status.