I'm actually very impressed PS4 is doing all that with only one 100 dollar price drop in 5 years. That's ridiculous. Just imagine if they permanently drop the prices another 100 on both Pro and Slim next year. Sure PS5 will be a thing by then, but PS4 will still keep selling strong. Reason are all those games already out and still coming up...plus, dare I say it, even PSVR should act as a kind of system seller, at that low price point.

Excellent, the problem is solved.

And it is baffling that PS4 is still breaking records, Sony projection will be beaten again and who would think that a massive success and nearing 100M at the end of the fiscal year would still be retailing officially for 299 and only 100 USD lower than release, that is unprecedented.

Let's see if Sony still plan on cuts on the near future to keep it on 15M+ route and even be a budget option when they launch PS5 or if they saw that they don't need to go below 299 regular, 199 Holidays to sell major numbers not lose any on HW and still racks royally on SW. I loved my PS1, 2 and even 3. But this have truly been Playstation golden age (even more considering profit-wise and 1st party quality of titles).

I dont think there is big difference between very good and quite good.

Agreed. There's more info that would be good to have in OP.

For instance:

Top 10 best selling games in October 2018:
1. Call of Duty: Black Ops 4
2. Red Dead Redemption II
3. Assassin’s Creed: Odyssey
4. NBA 2K19
5. Super Mario Party
6. Soul Calibur VI
7. FIFA 19
8. Marvel’s Spider-Man
9. Madden NFL 19
10. WWE 2K19

Top 10 best selling games in 2018:
1. Call of Duty: Black Ops 4
2. Red Dead Redemption II
3. Far Cry 5
4. Marvel’s Spider-Man
5. NBA 2K19
6. God of War 2018
7. Monster Hunter: World
8. Madden NFL 19
9. Grand Theft Auto V
10. Call of Duty: WWII

NPD Analyst Mat Piscatella stated: "But yeah, no one saw this PS4 success happening this year, not even Sony."
Do you think this means that their 17 million forecast is still undercutting what the results will be and by how much?
Also, is it possible that Sony's failure to properly gauge sales will result in massive shortages?

Forecast isn't 17m anymore It's 17.5m! It got adjusted up again when they released Q2 results in October. Was 16m, then adjusted up to 17m, now 17.5m.

I think there probably will be shortages over the holidays.

Sony knows their limitations, that's why they can't lower the price of the PS4 worldwide.  They know that they would not meet demand, at all.  Japan wouldn't care but Sony' hasn't been focused there, everywhere else in the world though, it would sell out almost instantaneously.

I don't think your prediction of Switch November will come true.  Sales in Japan will be amazing but looking at Best Buy and GameStop (PS4 is out of stock) the PS4 has been winning all month prior to the floodgates opening up tomorrow and Friday. One suspects that the issue is pricing.  If the Switch was $199, oh yeah you better bet that Switch would walk away with it.  The PS4 will sell more over the next two days than the Switch will sell all month. 

Cleaver analysis.  Basically you are saying that Sony has to keep the price up because it can't meet demand.  Mat suggests that the amount of units sold will already be equal to the amount of stock.  They are already going to be in the whole with no stock.  Lowering the price worldwide would make the supplying the PS4 completely unsustainable.