holiday 2014 I think we will see a 50-100 at least.

There is nothing wrong with the way XBO is priced, and Kinect is something that everyone is going to come to love. Seriously, once you experiance the convenience of voice controls you will not like going back to grabbing for a controller. I think one of the worst moves Sony made was not putting the camera in every system, and not being more on par with their voice command abilities. 

As far as price goes, it will come down as needed to stay competetive. If Sony is blowing them away sales wise, they will more than likley drop the price around E3 or September of next year. If they are still doing fine in their opinion, they may not drop the price until 2015 when the chips for both systems should see a move to either 20 or 22nm processors.

PS4 and XBO will probably take a very long time to get to $300 or $350 as I think they are both going to sell reletivly well at their current price, and I expect them to continue the increaed value > price drop model we have seen this gen. I think 1TB HDD's and a bundled game will come before we see a price drop from the current $400 min price point.

It is also important where you live.

Very true. Its been obvious from years of iPhones, iPads and Galaxy products that most Americans don't care too much about price. 

I think there's a good chance they drop to 399 in Fall 14.

When they drop below that, who knows.

I might pay for motion control for young kids to play with, but I could easily do without the voice controls.

We got voice control on our Samsung TV this year.  Granted it's not as good as the XB1, but I turned it off after all the annoyance we had - randomly thinking we were talking to it and eventually forcing us to grab the remote to get back to what we were watching.

I fully expect a kinect less bundle this year

$399 £349 or possibly a tad cheaper

Xbone is not overpriced, the kinect is. Such a weak console should be sold for $349 without kinect, like the Nintendo should sell Wii U for $199 without the pad.

So far I have not had that issue with XBO or PS4 voice command. XBO's Voice commands work briliantly, and even the limited PS4 commands have been spot on. I have not had any instance I can remeber where the voice controls activated at random. As the generation goes on I expect both will only get better, and by the end of this gen voice controls will be in basically every product.

As far as motion goes, I think the sales of Wii Sports, Kinect Adventures, Just Dance, Duck Hunt, and many others show to much of a market for motion based games. I think as the generation progresses and more games are built around Kinect and PS4 Cam, the sales will reassure MS that this was the right move, and possibly push Sony to have to include the cam.

If devs sart selling games in the 5M range exclusive to Kinect, and demand PS4 Cam is bundled for Sony to get a share, it will be a done deal. We are talking potential of 100's of millions to maybe even billions of dollars in revenue and profits.

You'll be waiting for a while.....