2nd that! I walked into EB games and sussed it out, there $900 place holder price is bullshit.

$500 is in no way mass market.  Even a $400 price point is pushing it.  People end up needing computers and other smart portable devices, so adding just gaming at that price point is nuts.  And even trying to do $300 with a subscription is really, really pushing it.

These are the prices after you take inflation into account:

SNES $358
N64 $285
GCN $262
Wii $270
GBC $111
GBA $197
DS $146
PS2 $252
PS3 $206
PSP $297

http://www.usinflationcalculator.com/

if you're wages stayed the same like it did for the majority then inflation is irrelevent imo..  You can only afford what you can afford.

This is true, even if both consoles are expensive, a PS4 would be more convenient for that reason, unless Microsoft starts developing many first party exclusive games not named Halo/Gears/Forza.

Sorry, but for me $500 is too much for my budget.

I wonder how many people complaining about a $500 console (whether it be ps4 or 720) also own equally if not more expensive tablets or phones.

Is it too much? Nope. But is it for me? Probably not. I already set aside around $900 or so for the PS4 and games and I intend to save more between now and launch. (I'm operating on the assumption it won't be inexpensive).

MSFT would have to show me their system is worth the 500. Currently, I do not find the Wii U is worth its price and it is significantly cheaper. Nintendo has to show me its worth, which they have yet to do. Sony has already convinced me to make a purchase at launch. If MSFT brings the 'A' game and the system has decent software support at launch I may purchase one later since the great majority of my friends from my home country play Xbox 360, and I expect them to upgrade (unless MSFT really messes up).

Out of curiosity, what has Sony done to convince you to make a purchase at launch, regardless of price?

The same rumours also mentioned that games won't be on discs, so it wouldn't include a Blu-Ray player. That would make it even cheaper to produce so yeah it's too much.