If they market it as a super-premium product, with a hybrid drive and/or an elite controller, I can see it working at $499. But, short of at least one of those two upgrades, its not going to work above $399. Even with those upgrades, its going to be tough at $499. Let's remember that consoles typically come to market in the fall, as the holiday shopping season is the time when kids and husbands are most able to convince their parents and wives to drop big bucks on a new system. But, those non-gamers are unlikely to see the value in teraflops and other technical advancements.
It's like this: "My son wants an XB1. I see this one here for $300, and this other one for $500. You say they both play the same games? This other one has more whats? Teraflops? Uhhh.... I think little Jimmy will be fine with the $300 version."
That $500 psychological barrier is huge. Even for me, a lifelong gamer, with a decent income, the decision to part with $500 for a new console, that is really just a revision of one that I already have, is going to a tough one to make.
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