Make no mistake, friend. Value is a VERY subjective thing.If the consumer would pay 500 $ for  a cheeseburger, that thing would be worth 500 $. Some collectors will pay thousands for old Lego pieces, made out of plastic that's worth like nothing. But when there is a collector paying thousands of dollars for it, the thing is worth thousands of dollars. Also, if Apple releases an iPhone with inferior hardware for a higher price than the competition, the device is still worth it, as long as it sells. 

Now, it also works the other way around. You could bring the most advanced tech ever in the smallest device people have ever seen. Like, it's your own supercomputer in a pocket, right? Ok, you try to sell that sucker for 499 $, but it doesn't sell. Even if every unit would cost you 498 $ and you're only asking for one extra dollar. If it doesn't sell, it's not worth it.  Even if you make losses. If it doesn't sell, it's not worth it.

The worth of something is COMPLETELY subjective. Remember the PS3?

I just think back to last gen. According to a lot of people on the internets "Nobody will buy a 360" then it was "When PS3 launches it'll leave the other 2 in the dust." and then it became "sales don't matter to us."

To me this whole thing is just a repeat of last gen with people on the internet using their own bias to predict the outcome but they failed to realize they don't speak for everyone. If they did not a single Wii or 360 would have sold.

Also if the X1 has nothing to offer, why do some people get so excited when Sony announces a similar feature?
Just like today there was an article here and all these Sony fans were giving Sony the win for offering streaming of PS3 games on PS4 some time in 2014. They actually thought paying for streaming their old games was better than Nintendos solution of free BC with no strings attached. Why because even though it wasnt as Good as Nintendos solution it was something X1 hasnt covered yet so that made it superior, even though there are clearly better options out there from other companies

What I got from this:

"I think, I think, I think, I think"

Microsoft will Win the US , with Microsofts marketing and NFL promos there is little doubt about that. It will take some time as intitally it seems Sony is gonna take a worldwide lead, it will keep it everywhere but the US where microsoft will slowly catch up and eventually dominate again. I am less sure what the Wii U will do, it will be an interesting holiday for sure.

How much something sells has nothing at all to do with the value on the sense we are talking.

I can go out and buy a Mini Cooper. I cant go out and buy a Range Rover Sport. There is more value in theRRS package. Because more people buy the Mini doesnt mean it offers more for what you pay... It just means its the more affordable option.

Riderz is bob on. It doesnt matter what you think.

http://seattletimes.com/html/businesstechnology/2002986247_webethree11.html

Q: Let's jump right into the price. Why is it so high?

A: I don't know that it's high for the kind of value that we're bringing into the hands of the consumers. If you look at technology that we've put into the box this time with the Cell processor, combining that with the fact that it'll play games on Blu-ray discs as well as motion pictures and other software, the ability for it to go onto an online environment right out of the box, the Wi-Fi capabilities, the fact that it interacts with the PSP in many different ways, the fact that it is backwards compatible with PlayStation 2 and PlayStation titles.

You add all that, and on top of that you layer on the compelling entertainment content that we'll be bringing to the console, I think makes for a great value proposition.

http://money.cnn.com/magazines/fortune/fortune_archive/2006/11/13/8393083/

The company has also taken heat from fans for the PS3's price. A fully loaded unit will sell for $599. Sony executives say the console is worth it. "If it was all about price, then we'd all be driving Hyundais and we'd all be watching $199 TVs," shrugs Jack Tretton, executive vice president of Sony Computer Entertainment America.

So, someone into NFL football is going to drop $500 for a ONE, and pay for Gold on top of it?  Why wouldn't they just sign up for NFL Season Ticket and be done with it?  Do you see sports bars making the ONE a must-have device?  If not, and they are in business to cater to NFL fans, why is the average NFL fan going to get a ONE?

 "Its irrelevant what the consumer thinks" All that's relevant is what the consumer thinks, and "worth" is subjective to the consumer. Look, all that you said below the first line I agree with when speaking objectively, but speaking objectively is completely meaningless when it's the consumers who'll go out and buy these systems and they'll subjectively decide "worth" and "value".  And one more time... the microsoft guy in OP was not speaking in the terms you are speaking in, he was speaking in subjective terms ("games are better, online is better etc.").

There is a bundle up on Amazon france which has the PS4 with 2 controllers, PS Eye and KZ Shadowfall for $499. Same price as an X180!

I know which one has the better value!

No matter what your opinion of MS, you have to give some credit for taking a risk. If we have all been talking about a sku without a Kinect for months, chances are they have been talking about it since the start. I'm sure some people at MS probably thought a Xbox One that was $100-$200 cheaper at launch would give the system more of a boost than a bundled Kinect.

While I am a supporter of the Kinect, I tend to agree that a launch Xbox One that was priced at $399, or, even better, $350, would give the system more of a boost than any potential value added by the Kinect. I don't see TV services being something that will draw people to the console either.

While Kinect 1 sold well, it never really had that killer title that everyone had to play. MS is laying the groundwork for either themselves, or a third party to come in and actually invest in Kinect 2 with at least the confidence that an install base will exist for it considering that every Xbox One owner will also be a Kinect 2 owner.

Not a risk I would take, but MS is taking a chance I'll give them that.

Penello and others seem to believe that Kinect 2 should win out over a price cut for the system.