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binary solo said:
With the way PS4 seems to be able to stay marginally ahead of Xb one in the USA at $50 higher price, when the free extras are more or less comparable (though the extra controller for Xb one is better than a 3rd game). I wonder if Sony might just go with a $50 price cut this year to see what happens.

I have no doubt MS has realised Xb one needs to be $50 cheaper than PS4 in order to stay competitive and have a chance at pulling ahead of PS4 in the USA, which means MS is prepared to race Sony to the bottom on price. I don't think Sony feels like having to compete with a $250 Xb one until at least late in 2016. And if Sony drops PS4 to $299 this year that is exactly where MS will go. Even if Sony can afford to go to $299, going to only $349 allows Sony to put a great deal of value into bundles, and it means Sony can go to $299 for Black Friday and Cyber Monday (as long as they can supply the market.

Excellent well thought out plan, but with one huge thing missing.  It doesn't matter if Sony only goes to $349, Microsoft may still go to 249 because 349 isn't winning it for them now.  Honestly, think about it,  how low would Microsft have to win?  Anyway there is another reason why they are hesitating the price drop.  Adding games to a bundle is a way of adding value with reducing the actual percieved value of the console itself.  That is what Microsoft has done to the Xbox.  They have to have games and a controller bundled at a lower price than the PS4 just to get a sales boost.  

Microosft needs to find a way to make the Xbox One attractive enough for it to sell without cheappening the value of the their brand.   People believe that the Xbox One is not worth the purchase if the PS4 is the same price.   Sony has somehow managed to retain that 399.99 MSRP and a sales advantage over a cheaper competitor who dominated the US last gen.   So, effectively, even if they Sony manages to tie Microsoft in the US - Sony wins the generation by a land slide. 

Regardless of what anyone says, everyone (fro Shu to Phil Spencer) knows its over.   The competition that is.  Which is a good thing.  We can finally get back to the games.