"The biggest driver for our network business will be the PlayStation 4"

Reading this, I am damn sure that Sony will not just concentrate on games but also will try to bring as much (paid) content to PS4 as possible.

Well, at 60.4% marketshare this year so far, I would say that desire isn't that unattainable

I dunno... it just seems like a dumb decision considering their poor financial situation. If people are willing to pay for it then why would you drop the price? The PS4 is outselling the Wii U and X1 every week so I just don't get why it would need a price cut. 

This move would offset any potential gains X1 could potentially make in the NA/UK market with the upcoming Kinectless console. Undercutting them by $50 right off the bat, June 10, would kill all of Microsofts momentum, from which it would probably recover either never or at least not until Halo 5/ GeOW4.

Not claiming it will happen 100%, but it would be such a brilliant strategic move, and would provide PS4 another 6-9 months of sales leadership, even with no true exclusives to help them.

Also, I would just leave EU price as is, no need to do it there, as X1 is not a threat anyway.

Yes they could do that, but its still not a smart business decision. MS won't just watch their console fail; they will respond very quickly with a price cut as well. And MS is much more ready to take a loss on the console than Sony. So overall what would that solve? 

The answer is already in the OP...More install base = More profit..they don;t make much off hardware. More software, subs = more progit, also, they recently trademarked a new ps4 model, could mean they have already got the manufacturing cost down.

That is not necessarily true. Yes I get that a larger install base means more profit in the long run but if the loses are too large when trying to gain marketshare, then they may have trouble recovering those loseses if they are too large. Also more losses isn't something that Sony needs right now. 

Maybe, maybe not, but that decisions is being made by people whtih a lot mroe credentials and intimate knowledge then you or me. They losses won;t be large, sony is no longer going to be taking large losses on ps4....Again, manufacturing costs go down, so does price, sony made the ps4 with quick cost cutting in mine. They have recently trademarked a new smaller PS4 die size, that usualyl means cheaper.

Yes that's true. I guess we'll just have to wait and see what they do. If Sony can do it by making small losses then its definetely a smart decision.