No. From my perspective, the PS4 offers the least value of the 3 consoles. It has almost no unique capabilities - it just has better graphics.

The XBox has Kinect, the Wii U has the tablet and Wiimote, all of which adds to their core value proposition. The PS4 is a PS3 with a better visuals, and more expensive games. It should be the cheapest option.

Possibly, but I think Sony had half an eye on Wii U in its pricing decision, but 1 1/2 eyes on Xb one.

like one other said they may not make a profit in the us, but in the eu where I guess where sony dominates the ps4 is >$450 without tax.

so they might lose money in the us, but in the eu with one game sold should brake even or even make a profit.

Yeah I agree, In terms of a business decision, considering Sony continues to struggle, it would have been smarter if they priced their console at at least $450. They could have done $499, but its better to price below the competition. That way they would be making more money, Oh well, at least the price is great for consumers!

i wouldnt mind $500us price tag, but i'll take the cheaper price :D

I will just copy what I said in another thread:

"You can't just say that if Sony raised the price 50-100$ that they'd suddenly make more profit, sure if all they'd make money of was the console itself then that might be right but that really isn't the case.

Let's look at what Sony is really making money of with this console, there is the console itself then the accessories, games and subscriptions. Now I think it is very safe to assume that Sony would sell less consoles if they priced the console higher, so that already would mean less games, subscriptions and accessories sold. But even the guys that still buy the console, do you think the will buy the same amount of games with the PS4 if they've already paid 500$ for the console than they would've bought if the console was cheaper? I don't think they would.

We could also go into how Sony would probably need to pack in more with the console if they sold it at a higher price and how economies of scale would come into play since Sony would probably produce less because of lowered demand, thus possibly raising the average cost of producing a PS4, but that would all be very speculative.

Fact is, just raising the price of a product like the PS4 and expecting bigger profits is really discounting alot of other factors that come in play with these consoles"

Also Marketing costs would probably be higher, cause they can as of now use the 100$ price advantage as a damn effective marketing tool.

So yeah, I don't think Sony regrets the pricing.

I would argue that Sony is better off pricing the PS4 at $399 even if they lose a bit of money upfront as they will more than make up for it in software and accessorie sales and not to mention subscriptions.

A lower RRP will ensure larger initial console sales and should help with maintaining sales momentum overall. After having a tough time building up a reasonable install base on the Vita Sony will be desperate to establish a viable install base as quickly as possible on the PS4 and with their current strategy I think that is likely to happen.

I can also foresee them having PS4/Vita bundles as well in an attempt to leverage PS4 sales success into success for the Vita.

Nope at $500 dollar the success would not be the same cause with ps+ required and the camera MS would have made the PS4 looking like it cost $600 as much as PS3 even if this is actually false.
But a lot of people who already own xbox360 would probably think that way. "Now i have get ps+ and buy the system at $500, I might as well stay with MS"

they will not when the numbers start coming in. That is if they even do now which I dont think they do.

No, Sony's mistake/problem is outside of gaming. Camera, TV and Pictures.