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Intrinsic said:

Just get this, the only thing that could stop or delay Sony from dropping the price is if from their internal projections they realize they wouldn't be able to meet demand. 

This is ultimately not about making more from each console unit sold, or about "selling more" than the XB1, its about increasing your user base as quickly as possible. Look at it this way, If Sony sells 15M PS4s this year at $400 or 20M if they drop the price to $300 at some point, those extra 5M gives their overall user base a massive boost. Those are 5M more people to sell games to or buy PS+ sub's. Basically, they stand more to gain getting as many consoles out there rather than making a profit on each console sold but selling less of them. 


Exactly, the higher the difference in userbase between the ps4 and it's competition the more advantages the ps4 gets.

Lead platform for game development.

Higher third party support. (More likely to get third party exclusives due to high marketshare and less likely to miss third party titles for the same reason. Indies also more likely which has been very apparent this generation so far.)

Higher software sales. (Dollar dollar for sony and again this increases the importance of the ps4 over other consoles to third party.)

PS+ Subs. (dollar dollar again)

More desirable due to friends owning the console, meaning even more console sales.

 

If you fall behind your competition it's very difficult to catch up.