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The prisoner's dilemma again. I'm thinking, assuming the rumored specs are correct, that Sony will settle for $449 with moderate losses and Microsoft for $499 with large losses. Ideally for both companies prices would be higher respectively, but they know the risks of being undercut by the competition.

Or maybe if a Series S console exists, Microsoft could be really confident of their two-pronged strategy and will price the Series X at $599, with Sony taking the $499 spot. Investors looking at quarterly statements will be happier, but our wallets won't I suppose.