If the PS4 sticks to 400$ with no game and the Xbox One is at 350$ with a game (that alot of people want) then I think the Xbox One will eventually win North America. I do not think Sony should let this happen, claiming North America this gen would be huge for Sony and Playstation

LBP3 has sold almost 700k on PS4+PS3 so far. It's the same game. How much more expensive do you think LBP3 was than Bayonetta 2, because LBP3 will easily triple, quadruple, or worse, quintuple Bayo 2's sales.

Thats the beauty of it, MS said them selves its temporary.  Why, to avoid a reaction form Sony.  Last thing they want is for PS4 to get a cut.  So they appease them by making it temporary and only in 2/3 markets.  

If MS keeps the free bundles at 350 price, it might motivate a price cut from Sony at E3

I think Sony can go this entire gen without selling the PS4 for a loss which is excellent news

Bayonetta 2 is a Japanese niche game on a very poor selling console that everyone is calling a fail already. Despite the fact that it has to compete with Super Smash Bros. Bayonetta 2 is at 450k according to VGCHARTZ, but it's probably undertracked as the game sold over 60k copies in France alone. 

LBP3 is an iconic PS brand on a huge userbase (over a 100M) and the sales aren't very spectacular. I predict this will be the last LBP game we see. It's also the only exclusive title from Sony this Holiday. 

Agreed, Sony should not rush into anything. E3 would be the proper time to drop the price imo, they are driving the prices of GDDR5 ram down quite a bit with the PS4

Not going to happen lol. Its going to easily get to 1 million which would almost certainly be profitable

So, again, you're basing this on nothing but your own bias. Just for fun, and because I like to destroy unfounded arguments, here's how the real numbers look:

Notice LBP3 (PS4 version alone) is keeping up with LBP1. When both PS3 and PS4 versions are combined they line up with LBP2.

Now for the main course:

LBP3 PS4 vs. Bayo 1 PS3 vs. Bayo 2

Sales are not even in the same category. 

Now answer me how much more expensive you think LBP3 is than Bayo 2?

It's not going to have the same legs with those mediocre reviews and buggy game glitches. And it's probably more expensive than Bayonetta 2 yes. I never said Bayonetta 2 would sell more or profit more. It's a Japanese niche game for crying out loud. LBP is supposed to be one of Sony's biggest franchises. 

Bayonetta 2's attach ratio is a lot higher. And that's pretty impressive for a Japanese niche game on a Nintendo console (where third party and "mature" games usually don't sell well at all). 

This is a legit arguement but honestly I do not think LBP is a series that uses reviews that much to get sales. But LBP3 is not really buggy anymore atleast from my experiences, I did not buy the game until a after the major patches