The decision to keep the price hight than the competition was a bold move by Microsoft. It may have paid off but they were not to know that it would generate more profits relying solely on the loyalty of their customers to better the PS4. Microsoft originally set their price lower than the competition (xbox 360 cheaper than PS3) in this we can assume that they wanted increased demand for the product (get the product out in the market place) now that they have achieved this they have raised the price above the competition in the hopes of consumer choice allowing them to trump the opponents.