PlayStation 4 to launch for $399

PlayStation 4 will launch for $399, $100 cheaper than Xbox One.

Jesse Divnich, VP of insights at EEDAR, believes the price disparity between Xbox One and PlayStation 4 is due to the mandatory bundling of Microsoft's next-gen Kinect camera with Xbox One. Although PS4 supports PlayStation Eye, it does not appear to be mandatory with PS4, which can cut down on costs. "Sony was able to come in $100 under the Xbox One, which should be considered an advantage for the PlayStation 4 going into the holiday season. We believe the Kinect 2 bundling is the likely the driving force in the pricing disparity between the PlayStation 4 and Xbox One," Divnich said.

Divnich is optimistic about Microsoft's chances, even with the $100 disparity. "It shouldn't come as criticism to Xbox, as the Kinect 2 is firm part of Microsoft's and Xbox's long-term strategy," he said.

Michael Pachter, research analyst at Wedbush Securities, was less kind on Xbox One, calling Sony's undercut price "genius." On Twitter, he pointed out that "Microsoft messed up on this one, Sony seized the opportunity. Talked about consumer trust. Well played."