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Looking at the results of January and February NPD, American consumers still view the PS4 as the console with more value despite being $50 more expensive. Sales performance appears to be dipping a bit this month according to Amazon. Before, the AC bundle usually lingers around at the low teens, but now it has dropped to the low 20s. The MCC bundle is only seeing incremental increases in demand. In contrast, the PS4 has been in the single digits all month.

This tells me that the XB1 needs to be $100 cheaper in order to exceed the PS4's sales performance in the US. However, a pricecut for the PS4 is definitely happening this year due to precedence. If Sony cuts the price to $349, Microsoft needs to cut the price to $249. If the price is cut to $299, then the XB1 needs to be sold at $199. However, even a company with "unlimited" money like Microsoft will not be willing to sacrifice that much revenue and profits. The other problem is that the price can only go down so much. At some point, you can't cut the price anymore meaning that the PS4 and XB1 will be at even ground and we all know that the PS4 easily wins at price parity.