The PlayStation 4 will launch this November at $399, making it the closest competitor to the next-gen console that’s already on the market: the Wii U. Nintendo has struggled with slow sales of the Wii U over the past year, and faced even bigger challenges with the upcoming consoles from Sony and Microsoft, especially the PlayStation 4.
Nintendo has responded to the upcoming challenge by dropping the Wii U price from $350 to $300. They also cut the “Basic” model from the lineup. It would have been very difficult for Nintendo to compete with the PlayStation 4 at $350 — the PS4 cost only $50 more, yet offered far superior hardware.
The lineup of consoles this Fall looks like this: Wii U at $300, PlayStation 4 at $400, and the Xbox One at $500. Three very different consoles at three very different prices. It’ll be interesting to see how things play out.