yes they will.
Microsoft already made a "price increase" and it did not hurt them

sony can easily do the same. theire only 1tb model in the us was / is the cod bundle.
plenty of room for a standard 1tb sku at 349 and imply nearly the same value as 500gb for 299
also this 299 is just a black firday weekend promo. every one knows price will go up again. the general shopper is not that price sensitive, like the bf bargin hunter

Sure, I think they can go back to that as the MSRP. But during the rest of the holday time there will be incentives, like gift cards or 3 or 4 games, or even $329 with extra controller. Come new year I think the best thing for Sony to do is drop the 500GB unit and put the 1TB in at $349. I do think returning to a $349 price point for a 500GB PS4 with no game is completely out of the question. Indeed even a 1TB unit with no bundle game will be a pretty rare sight. 

As for Xb one. Hard to say since $349 has been the baqse price for Xb one for over a year now. And for Xb one to compete with PS4 in its strongest territory it can't have the same base price. Even with a $50 cheaper base price PS4 won more NPDs than Xb one. If MS has resigned itself to not winning the race, and has turned to selling well enough and being profitable, then I think it will, and should stay at $349 at least until E3 2016. 2016 should be a slim year for both PS4 and Xb one, so the big question will be how much they drop the price. both going down to $250 would be massive. But I think Sony will only drop $50 for the slim, but perhaps up the HDD again to 1.5TB.

I'd like to see them keep the party going at the $300 price point.

Realistically though, PS4 will probably go back to $350. XB1 though, it's 50/50 they'll go back. I think they'll want to keep their price edge over PS4 if possible.

PS4 can manage to do great at $350, but I doubt XB1 can do the same so I think it'll settle down at $300.

Sony: Easily
Microsoft: How much money are they prepared to lose?

but is it really costing them? Lets say last year they sold for 349.99, lets say a majority of those console purchasers do PS+. Essentially they would be in the same position. That said, I have not seen what % PS4 owners have PS+, anyone have a link to data on this?

I think the PS4 will still be selling just as good if not better, but the XB1 might have a bit of a rough time. If they don't do a price cut by/at E3, it's going to be awfully hard to go to holiday 2016 (nearly 2 years) without a price cut.

http://blog.us.playstation.com/2015/12/01/two-ps4-bundles-just-299-99-each-starting-december-6th/

I win thread thanks for playing ; )