After the amazing technical demonstration Sony showed at their pre-show press conference, it makes people wonder just what this hardware is going to cost. Rumors floating around the net (including Gamespot) indicate a sub-$500 price point.
There's no way a game company can release a console at anything above $399 and expect it to sell well, or at least be competitive. The chances are even lower if it's released during the dry spring season. It doesn't matter how good the games look. $450-$500is simply too much. The 3DO proved it. It was the height of technology for its time and it backfired. Many retailers are only selling consoles in package deals, and that will take the price well over $500. Add in a game you want, an extra controller or two, and possibly some other must-have accessory, and you're over the price of the Neo Geo.
No amount of hype will sell a system well above the halfway mark to a four-digit figure.