WTH? smartphones and tablets... the way of future gaming. No, not yet. I believe we're pretty too far from such an accomplishment. Console hardware should continue to pull amazing results next generation, that it makes gaming on mobile devices a far secondary option.

They will sell it for $400 unless they have a super model with like 2 controllers and 2 games and PSN+ included.
also i doubt it will only cost $500 to manufacture when consoles are filled with high end parts on release, chances are the custom GPU will be equivalent to $500 model GPUs, and be sold for $400 because of contract.

Sony always sells hardware at a loss. If they can be breaking even with a $500 price tag you can bet they'll only be charging $400. The question is, can they really keep their technophilia in check enough to make such a relatively inexpensive console?

$399 should be the limit, IMO. Anything above should only hurt more. Altleast initially releasing with limited hardware option out of the box with the hyped first- party launch games, can still help.

What Sony has started to do is cater towards different market segments simultaneously. I think they have resigned the thought that just 1 console can appeal to all audiences and I think this is the correct approach. This is especially accurate since the video game ecosystem is adaptive ane evloutionary.

The PS4 will be the next best tech and will be the most advanced gaming machine around. Much like the vita is to the PSP, there will exist differnt market segments simultaneously. The PS3 will probably only grow stronger over time and there is a very large possibility that the PS3 and PS4 could sell at around the same levels for the firs couple of years following the PS4 launch.

This is the new approach for tech nowadays. Look at apple, many products targeted at a scalable market place.
The PS4 is Replacing the PS3. The PS3 is replacing the PS2. The PS2 is finally going to be completely phased out in all regions and replaced with what will be the very affordable-yet extremely capable PS3.

Two Good selling consoles can make more dollars than one Great selling console.
I think the OP is dead on with the expected pricepoint.

Regarding Sonys finacial situation, they would be close to death if they release a $400 machine and sell it at a loss. Sonys worth is about 15 billion USD and they are losing money. Do you think they can afford a product that is expected to have a 3 billion USD loss for the first 2 years like the PS3 had (not counting R&D!) That is 20% of the whole company.

With the Wii U being not the overwhelming powerhouse and the financial trouble Sony is in, MS can piss on the parade by releasing a very powerful machine (significantly more powerful than the PS4) and sell it at a loss, because they can afford it. Sony would be in serious trouble if they face a more powerful competition for the same price and better marketing.

If only you werent a pet monkey, you could get a job at Sony

I hope it has 4-6 gigs of ram (not including Vram) based on the recent Next box leak. And seeing their price point for the Next box, thoughts of that $299 core model for the PS4 seem all the more real and necessary.

Depends how big the loss is if they release it at 400 bucks, a small loss won't hurt them. They make most of their money on software anyway. Each PS3 was worth $840 at launch. The bluray drive was the expensive component in the PS3 and back in 2006 standalone bluray players cost 1000 dollars. Adding bluray drive won't raise the cost like it did with PS3. Most of the rumours say PS4 is getting AMD CPU/GPU, further cutting the cost by using off the shelve parts. I predict a BOM comparable to retail price, I'm willing to pay 499 euros, the same launch price of PS2.

The next xbox probably won't be the powerful if the latest 56 pages long document is true. It looks like MS wants to turn the next xbox in to a media hub set top box. 720 for 299 dollars with Kinect 2? Suppose Kinect v2 is $100, the console itself is then worth $200.

Sony has more than 15 billion USD in assets. These resent losses are nothing. They can afford a PS4. If it scuffles like the PS3 did out the gate however, that could change.