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$299 is the magic number, even the PS2 first price drop was $100. Destroying the competition now will secure cheaper exclusives later. Destroying the competition lowers the cost to compete, and as stated will cause more long term revenues.

Advertising the first price drop to $299 will have a huge impact in the US, and all Sony needs to do would be promote 3rd parties games with the price cut (generating even stronger ties to third party) while dominating the charts. Once Halo is crossed off the Xbox One's chalk board, doom articles will follow only solidifying the PS4 as the dominant console from this point on.