Lol, why don't you just say that it will get a price cut in the next 5 years to be safe.  Of course it will get a price cut eventually, I think he just meant it won't get one sooner than later.  Besides, if PS4 continues to sell at the current pace, Sony is not cutting the price.

This is one of the more interesting things about PS4 sales. It really doesn't have any current must buy killer apps. It's almost as though people are being motivated to buy them because of the consumer frenzy tied to items that are in short supply relative to demand.

Granted, people can buy a PS console knowing what franchises they can expect to see in the future (just like buying any Nintendo hardware), but the key reason to rush to buy a console before those games are even available is simply because a lot of people are motivated to buy something now when it becomes momentarily available that they might not be able to buy at their convenience later. 

Price-wise, the $399 SKU is in line with what most early adopters are willing to pay. The consumer frenzy factor probably results in some additional sales from people who wouldn't buy otherwise, but my guess would be these either don't stay in homes for long before being sold, or they don't see much use, meaning they aren't tied to software sales. A console that's not selling software is essentially useless to the manufacturer given the margins. 

About exclusives... different situations. In the case of Sony, they are selling the dream (cause of what they did in past cycles and even in special in the PS3 more recently. Not abandoning the system and having kick ass support until last year). In the case of Microsoft, they cant sell the dream, so they have to bring reality to it.

If Sony's dream doesnt come true its therefore reflected on the next cycle. Though that is unlikely given the sales.

So, yes. Microsoft definitly can use more exclusives. But, the price point is essential.

It kinda helps if you trick the average joe that you are getting a free game. It wouldn't cost microsoft much if anything - plus you value proposition is a little higher then having no game advertised on the box

MS is giving a free game since launch... Forza 5, FIFA 14 and now Titanfall.

oh yeah i forgot they had fifa in australia. Still the more value you pack in the box cover the more enticing the product is. It couldn't hurt?

Average Joe would probably feel hookwinked if they bought an XB1 for the "free" copy of KI, given that it's essentially a one character demo. But "Free Killer Instinct with every Xbox One" is not a part of the on box marketing. 

The Titanfall SKU on the other hand is a value added proposition even though it does require a paid XBL Gold subscription to really play. 

I agree.

Consumer dont take lightly to beeing fooled. That might earn you a sale now, but wont earn you a sale next time. Its something Microsoft is now learning the hard way. Dont incentivate them to continue down that road.

If you say you  give a free game, give a free game. In this case, KI with all content.

You will have to listen to it a lot longer.  Early adopters are just that.  They adopt a product EARLY in its lifecycle.  If this was a cell phone that will be replaced within 6-12 months, I would agree with you.  Due to the extremely long life cycle last gen, there are a lot more people who now have High def TV's and want to adopt the next gen right away.  Like I said"mostly" early adopters, not all. Like the Wii before, the PS4 has already gained a certain amount of the "cool" to have it thing going for it.  With the Chronic out of stock issue, it only adds to the fervor.  Had Sony had the instock that M$ had here in the states at the holidays, there would not have been as much of this constantly building demand.  Of course, they would have clearly outsold M$ if they had either way.

Sony clearly has the more sought after system at this point, and that won't change for most of the world either way.  Here in the US, the demand for the PS4 will stabalize when the instock issue is resolved.  Also, when M$ brings a little parity in price, the bleeding will slow or even stop.  As far as the rest of the world, M$ didn't even try to compete with the pricepoint they launched at.