Gamestop does the deals of the week articles and they list pretty good deals. 

Oops nvm i meant Gamespot. Always get those 2 confused. 

It had a new SKU released at a lower price (counts as a price cut, precedent set when Sony released the $400 PS4 model), and that model was later cut by $50.

Two price drops in less than three years.

Not really sure why you guys get so excited for holiday type deals. This is the time we will see bundles and price drops for all systems. For a gamer its always the best time of the year to purchase consoles when competition is decent.

Forgot about that one but if you're referring to the kinect-less SKU then that isn't a price cut. A price cut is the exact same item with a reduced price. Kinect was taken away so its obvious the price would go down. You are not getting the same item at a lower price. You are getting less for a lower price. 

I think he ment the ps3 and it's a similar case since the new model didn't have bc live the old ps3 models had.

As for the x one. From many consumers. The priced of the new model that wasn't available before was the equivalent of a price cut. They didn't have to pay as much for what they wanted. Microsoft just cutting the price, or Microsoft taking something out the consumer didn't want to reduce the price makes no difference to them. 

Another way of putting it is Microsoft reduced the minimum asking price to play on the Xbox one. yes there were less features, but reducing the price of entry is a big deal and doing it twice in a year was a big deal.

Exactly. Mostly everything from Microsoft this gen is reactionary to Sony. 

They saw they were getting raped in pre orders following e3 2013, so they reversed all those controversial policies.

Then when ps4 kept outselling them, they matched ps4's price. 

Then when that wasn't enough, they went below ps4's price. 

Putting that all together and it makes Microsoft look kinda desperate. 

I'm still baffled as to why PS4 is getting a price cut. Is it not by far the best-selling console on the market?

because what ever money they lose out on by cutting the price they make back from increased software and peripheral sales, as well as more PS+ subscribtions. and i am sure Sony also wants a larger PS4 install base there for when PSVR comes around next year. 

How long have you been gaming? PS2 got it's first price cut in MAY 2002. 

It launched in Japan on MARCH 4 2000 and America on October 26 2000 at $299

It went to $199 in 2002 in north America. 

PS2 was also the best selling console of its generation. :) 

So going by history, ps4 is due to get its first price cut around the same time ps2 was on the market.