I don't think realistically the consoles can drop much further in price.
As I understand it, Moore's Law wasn't about just doubling transistors every 2 years, but doubling in which it was economically feasible.
Smaller and smaller nodes require a much larger process to manufacture. And Moore's law ended at 28nm where the price was low to manufacture and could over time continue to be cheaper.
I don't see 16nm getting all that much cheaper the next 3 years. 7nm will definitely be more expensive. Nvidia charts show wafer costs as being the highest at 7nm.
That leaves memory and hard drive prices as a deferment factor for price drops and that situation could take a while to clear up.
Observe spike in costs going from 28 to 14
The move to 7nm should be significantly higher I imagine.
The slim variants launched Q3-Q4 2016 with Scorpio in Q4 2017. Not sure how much further that graph will go down.
I assume 16nm is cheaper than 14nm though.
If you look at 2nd graph, the move from 28nm to 14nm the normalized cost per transistor is very close. Except we doubled the number of transistors, so we're paying double. I don't see prices dropping much further on the silicon.
It almost seems impossible to see another $399 console without waiting a long time imo. If these normalized costs are correct and this pattern continues. We should see the companies strike at the point in which the normalized transistor cost is better than 16nm at that point in time.
Quite a bit more transistors however.
From extreme tech:
I think from the 3 graphs together, drawn in many different ways, we can only see more expensive consoles go forward (if we stay on the current APU path) until there is a technology switch. But that also means we are unlikely to see much more price drops as a result of wafer costs, so we're really just looking at memory and HDD prices to dictate the next set of price decreases.
Imo, the probabilities that PS4 Pro will ever get to $199, with the way things are today, are extremely low. This may also shed a bit more light on the importance of the mid gen refresh.