If they don't cut the price they will not even keep it close, they will be a distant 3rd console. That would hurt their brand name a lot I expect. Even if the games division has to sell off some of their studios or IP to cover the cost, even very important property, I expect they will cut prices prior to the next holiday season as without that the PS4 will be starting from a weak position being the successor to last gens lemon.
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