Maybe when looking at some screenshots or gameplay videos on the net, but not when playing it because nobody would buy it.

Ya pretty much. PS3 has proven that it's not about how much "untapped potential" a console has or how expensive it is that brings success in the marketplace. If PS3 didn't have its army of great exclusives, the console would be dead in the water. PS3 wouldn't have an army of exclusives if it didn't have a larger install base. PS3 wouldn't have a large install base if Sony didn't aggressively cut prices on PS3's high starting price. Launching a $500 PS4 is repeating the exact same mistake, again. As with most things, you eventually enter a point of diminishing marginal returns. It might cost $100 more to get a console 30-40% more powerful than Xbox 720 but in the end that little performance edge will hardly matter over 6-7 years. Launching a console 2-3x more powerful than Xbox 720 is inconceivable without prices skyrocketing to $600. Also, the most powerful console will suffer being held back by 2 other slower 8th gen consoles. How many developers will take advantage of the added power in the first 2-3 years? It's not out of the question that all 3 next generation consoles may focus on unique gaming experiences (tablet controllers) or something else rather than pure graphics since raw power alone costs a lot of $$ but if it's not utilized, you just end up with an expensive brick console in the first 2-3 years of its life that looks nearly identical to a console with 70% of its power but costs $100-150 less. PS4 just has to be close enough to Xbox 720 in power but doesn't have to be the most powerful console to win. Maybe Sony fans are so used to PS3 being considered the most powerful console that they don't want to consider the possibility of Sony choosing a more balanced approach for the next round (mid-range hardware with a mid-range $299-399 price)?

nah they should aim for a $399 price tag

No, imo.

Nintendo has shown there is success with a $349 price tag, and this is what they should aim for. And they would need to profit at that price too.

399-499 with a solid launch and not allow Nintendo and microsoft more then a years head start and Sony will do fine.

$439.99. Free netflix for 60 days, one free Ultraviolet download.

Consider what $500 buys you in the tablet/smartphone world, I have no problem paying $499.99 for high end console with a sizable HDD.

If you can't afford it, seriously the PS3 still is getting a lot of new games and has pretty good graphics, and should be $199.99 next year ... that's the system for you.

I hate to sound crass, but really, there's no gun to anyone's head forcing you to have to have a PS4 or 720 on day 1. The price will come down over time.

$599.99 was insane for 2006 because the competition was $250 and $299-$399.

Today the Wii U is $350, mine came to basically $420, because I had to buy a HDD for it. The 720 will probably be the same price as the PS4.

I'd be perfectly ok with

$449.99 -- Base console w/32GB flash storage

$499.99 -- Deluxe console w/500GB HDD

Coming at a competitive price is the most important thing. After two sluggish launches with systems put at premium prices its pretty obvious they need to be aggressive with pricing. However they also need profit so if the specs need to suffer then no worries. Sony were never known for having monster powerful systems anyway.

can't ... see... the future. dark side ... blindens me...

$499? given that it should be able to do 3d at 1080p60 i doubt it will be less - well, if it is also for aaa-titles and not for another wipeout... problem is, sony has to build a machine that prints money from day one. if they build a powerful machine it will be expensive and people won't buy it - they can't sell it with loss. if the console itself is cheap to build the specs won't be overwhelming and the games won't run at 1080p60 - which will disturb users here but the masses won't care. but still x3ox could easily outperform orbis but who cares for best graphics-awards? oh wait...

Sounds like a financial suicide.