That is true for us here in the forums, who buy and play probably 10 games or more a year. But as many people watch one movie a year in the cinemas - and these are the customers who create a blockbuster - so are gamers who play one game a year (probably FIFA). And they make a successful console. If a company targets only gamers dedicated enough to visit regular gaming forums, they probably sell 5M lifetime. Let's be generous and say 10M - exactly this was the case with PS Vita and WiiU. Many dedicated gamers liked these devices. But not the majority, who plays fewer games.

The big 3 are really stubborn with official price cuts lately. I think they will have no problem introducing their consoles at higher prices, and then a price cut or 2 and then only relying on holiday or other deals to be the "price cuts".

agree to some extent, I think Sony themselves should also be able to cater to these more cost sensitive consumers and offer an option that would grow the user base. it would be beneficial to all, the broader the base, the more and better games will be developed.

the doors are open with the introduction of tiered skus (pro vs non pro), so the market is more aware now that there is no imperative to get the most expensive model if someone really wants to stay low cost, all while allowing the enthusiasts to spend the extra money for better performance and perks.

I would hope so, this isn´t 2006 anymore, we live in an age where people pay more than $1.000 for phones and other devices so some of that "disposition" should rub off a little on the console market, and considering it´s something that´ll last you for ~6/7 years and help insure a more significant leap over the previous generation, I say bring it.

It's literally the difference between $500 getting you a console and having money left over for a couple of games, a game and a controller, etc.  Or, $500 just getting you the console and having to spend $600 just to be able to use it.

As far as payraises and inflation goes, you do realize the cost of living increasing is also a thing, right?  My dad bought a ColecoVision in 1982 for $175.  You can tell yourself that purchase would have cost $460 today.  But, I will tell you that in 1982, my dad was able to raise 4 children on a single family income.  Today, every married person I know needs a dual income to get by (both spouses working).  And, a lot of them don't have children because they fear not having the money to properly care for another mouth to feed in the household.  Declining birthrates are a thing too, you know.  But, you keep telling everybody that a $500 base purchase for a toy isn't a big deal.  I hope Sony busts out another $600 PlayStation just for you.  Because if an adjusted for inflation ColecoVision cost $460 in 1982, then a $600 PlayStation today shouldn't be a problem for anyone.  Even though we already saw in 2006 it was an absolute disaster.

Only if the Console releases with a new RIDGE RACER!! :)

Why are people bring up the cost of phones as if it is remotely relatable?  Your monthly phone plan pays for most of the cost of the device.  Does your monthly subscription to PS Plus contribute a single dime to the upfront cost of your PlayStation?  No?  I didn't think so.

If you really want to be honest the right price is actually $299. 

However, its clear that at $399 the current gen consoles did better in 2013-2016 than last gen consoles did at that same price.

I think the market is read for $499. I also think that price will be dropped within 18 months.

If "less than $500" actually ends up being $499, then my respect for humanity has been lost.

But in all seriousness, the more expensive the better the hardware, and I want it to be powerful at launch. Without having given it much thought, I was expecting something right about the $500 price mark, and maybe a more expensive $600 SKU as well.

Edit: Is $500 really where consumers tend to fall off the wagon. I mean, the PS3 was $600 and that was more than a decade ago. By those standards, it would probably be closer to $700 today.

Yes it is, PS3 launched at 599 and had sales, X1 and X1X also had sales launching at 499. But still for obvious reason there is more initial sales when launching at 399 and good product than at 499.