Didn't the PS3 cost $600 when first released in the US? And the X-Box was cheaper at the time?
It ended up doing ok. They made their price more competitive.
Microsoft will do the same if they need too. They are banking that their customer base is loyal and that their exclusives will make the difference.
Yes, and it killed them during the first couple of years. It was way overpriced for the market, and was released a year after the 360.
Keep in mind one thing here, my man, when you speak of exclusives. Granted, Microsoft is finally investing a lot of money in their first party developers, but Sony have some of the best 1st party developers already in the gaming industry, with Naughty Dog, Sucker Punch, Guerilla Games, Sony Santa Monica, Sony Japan, Evolution Studios, Quantic Dream, and Media Molecule, among many others.
And a customer base is only loyal up to a certain point, up until where they feel they are getting screwed over. This is very reminiscent to the PS2 days with Sony, when they were on top of the world and felt they could do no wrong, that no matter what they put out next, it would be accepted with open arms. That didn't happen. Microsoft lept in and grabbed a significant market share.
XBOX One is not only 100.00 more expensive, but it restricts used games, is region locked, (Can't stress how important that is to the core gamers out there who want import titles), and at the end of the day, you are still paying to play online, even to use any of your apps.