Microsoft has taken to the web to defend its $499 price point for the upcoming Xbox One. Many have faulted Microsoft's price point as it is $100 more than the PlayStation 4, which is believed to have more powerful hardware and fewer drawbacks such as always-on DRM requirements.
We're over-delivering value against other choices I think consumers can get. Any modern product these days, you look at it: $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so, I think they're going to love [the console] when they use it.
I'm not fully versed in the economics of the console market, but it's possible that an extra $100 might not be enough to turn away customers. Also an important factor in console choice is what games each console has as exclusives. Microsoft has an uphill battle ahead of them.