Sony have announced that the PS4 will be £349 ($399) and will be released at the end of this year just before Christmas (no solid date yet). This means that the PS4 will actually be cheaper than the Xbox One, a good £70 cheaper for us brits and $100 cheaper for the states.
There will be a variety of packages available and the basic package at £349 won't include the new PlayStation Eye.
However Sony is taking on Microsoft's method of charging users to play online - no more free service. This was one of the best features of the PS3 but with this move it'll mean Sony can make PlayStation Network the best it can be as it was lacking compared to Xbox Live.