Multiple sources have told IGN that Sony originally planned to launch the PlayStation 4 at $500.
However, in the months leading up to E3, Sony reportedly abandoned plans to include a PlayStation Eye camera with every unit, thus bringing the price down to $400--a full $100 below Microsoft's Xbox One.
Sony did this quietly, the sources said, telling retail partners only about the removal of the camera and not mentioning the lower price to keep Microsoft in the dark.
PlayStation Eye cameras will be sold separately for $60.
By comparison, every $500 Xbox One unit will include a Kinect 2.0 camera. Microsoft has touted the new Kinect as an integral component of the Xbox One, unlike the Xbox 360 scenario, where the Kinect is an optional accessory.
A Sony representative was not immediately available to comment.