Gaming isn't a cheap hobby, it never has been. For those that can't afford a PS4, there's the PS3.

This thing will last people 7+ years. PS4 will be more than a just a video game console though. It will be an entertainment hub just like PS3 was.

Can't they keep selling videocameras? Sony's videocameras are pretty good.

According to Sony, the Playstation busines is one of its 3 Pillars. Get rid of one of those and the whole building collapses.

Didn't know they were THAT much into the bussiness.

Being an entertainment hub won't be a selling point. There are TONS of other devices that are cheaper where you can watch movies, TV series, etc. Heck you can use Netflix with your smartphone, which is more than enough for a lot of people. Gaming consoles sell because of games, all this entertainment stuff are just bonuses which will only be a second thought or not even a priority for a lot of people.  

Is true that gaming has never been a cheap hobby, but the economy is not in a well position for people to spend $400+ on a simple hobby. As long as the 360 and PS3 have games coming for them and the PS4 and Xbox Infinity are expensive (let's say until they reach a $300-$350 price point (not counting subscription base models, if there are any)), then both consoles will suffer in the sales department, at least that's what I think.

PS1 and 2 say hi

Both did lose money during the first year, the following years were profitable. Also there's the fact that Sony other divisions were extremely profitable at the time (especially TVs which is now in a very difficult position). They could take the losses very easily, and one of the reasons they decided to go the same route with the PS3 (and obviously didn't worked for them).

Loosing money on hardware is a very risky business decision, companies try to avoid as much as they can, but is something they most do in order to have an attractive price point. 

unfotuneatly people don't seem to realize what a deal they're getting on game systems even when you sell them at a loss.  If you went out and tried to build these things you would have to spend over $600 easily (especially considering they get significantly more performance out of those same components).  I think they should start out at $500 since most people wait for the first pricedrop and every pricedrop gives them a sales boost.  Why start at $400 when sales will drop off quick when you can start at $500 and cut price to $450 the following Fall to give yourself a boost.  Obviously it gets to a point where this gets stupid and no one would start at $700 or whatever but I'm saying that $500 can be accepted by hardcore fans and make a profit hopefully for a little and then you just have to hold out for long enough to not have to have an ambassador program.  In the end as WiiU and Vita have shown us you just gotta create an enticing product.  WiiU is lower than the other next gen systems most likely but it's not selling because it looks like a 7th gen console and people just aren't excited.

Selling the system at a high price just for your fanbase is a double edge sword. How long can your fanbase satisfy your sales? And even the most hardcore fans can't simple pay $500 because of money issues or other stuff. That didn't worked with the PS3 (and that was worst because they were already taken a $300 loss on every console) and it probably won't work now.

If you don't have good sales at the beginning, you're not going to get support, no support = no sales. Unless you do a very risky price cut (like Nintendo did with the 3DS) most consoles don't have an official price reduction until their first or one and a half year on the market. Sony had a hell of time restoring the PS3, not sure if they can do that again.

Companies need to attract every fanbase from the beginning, if they don't it will result in another PS3 all over again, which can't be good for Sony.

It is a selling point. Who would buy a console that can't even have internet access? These things are expected these days. 

I agree. PS3/360 will sell 3-4x more than PS4/720 this holiday. No one is expecting PS4/720 to sell 1 million on Black Friday like 360 did one year.