The $400 price tag should ring some bells, don’t they? Back in 2006 when Sony launched PlayStation 3 it priced the 20GB version of console to a whopping (by 2006 standards) $499. Add another 40GB to that and the 60GB variant was costing $599. Competitors? Well Microsoft priced its Xbox 360 at $299 and $399 and Nintendo put a $249 price tag on its Wii.

Two years down the line the PlayStation 3 was “dying on the shelves”, reported Silicon Alley Insider. Pricing may not have been the sole reason behind the not so off the charts sales figures as the initial line up of games wasn’t too impressive either.

Sony worked on its pricing strategy and in mid-2008 released an 80GB variant of PS3 for just $399. A year down the line Sony cut $100 off the console bringing the price to just $299. This reduction in pricing enabled Sony to sell 13 million units of PS3 as compared to 10.1 million in 2008.

Initial pricing goof ups is what Sony would be looking to avoid and with Xbox One already standing in its way towards achieving huge sales, a higher pricing would definitely hamper sales. Analyst Arvind Bhatia of Sterne Agee, in an interview with Gamspot, said that Sony wouldn’t be too keen on repeating its initial pricing mistakes when the PlayStation 4 launches later this year. Even if Sony ends up losing a few dollars on the console, it will try to push the PS4 below the sub-$400 territory.

There are others who believe that Sony may even price the PS4 well below that of the Xbox One. Analyst Michael Pachter of Wedbush Securities is of the opinion, based on the material cost of the gaming consoles, that PS4 would be priced at $349 as compared to $399 for Xbox One.