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twintail said:

If they can possibly hit $399, they can hit £300. But yeah, I am not saying it will definitely be that price at all. 

But that said, I don't think the PS2-PS3 movement is really adequate for anything since then. We were in a position where

1) MS was aggressive with software (which doesn't seem the case now),

2) PS3 was priced outside of any reasonable price bracket (which won't be the case now) and

3) the idea of being connected to a platform didn't exist (which is the case now)

Being embedded in an ecosystem is an actual real thing now, especially with digital content. Making the jump to another platform when you have invested heavily in a particular network is not going to be an easy decision to make. It's not like you can sell off your digital content, so will people just abandon all the time and money they have invested into particular games in order to not have access to it going forward?

Maybe, but I doubt it's the majority. 

$399 means a significant loss on sale because a loss at $500 means you're adding a further $100 to that loss at $399 removing the disc drive doesn't offset $100 that's the issue they face with the XSS pricing.

1 - MS still are aggressive it's called game pass, adding as much software to it in one subscription that works across multiple platforms present and future.

2 - We're entering an economic situation that will affect people's income in the coming months the price brackets are going to shift.

3 - The majority who buy and play mainstream games aren't connected to any platform they're only connected to their games of choice the's hardly any detriment to moving on from a platform with their gaming habits this is why Sony moved to secure games like SFV from any other platform because the is no platform loyalty from the majority they just go with the tide.

The only people embedded in an ecosystem are the minority the people on forums and such most consumers don't really care games like COD, Madden, NBA, FIFA etc... come out almost yearly so that's hardly much of an issue for them as these are games which when the next game arrives in a year the previous is redundant to them. This even extends to various Triple A titles.