Sony predicts PS4 will make more money than PS2. If so, ESRAM wasn't a requirement to avoid financial disaster.
Well, Sony Game lost money again last quarter, and there's not a lot but PS4 that should be causing it.
Saying that, I wouldn't doubt PS4 hardware is something like close to break even at worst. Each day that passes, especially this early in the curve, it should improve.
PS2 was not all that wildly profitable, it seems unlikely PS4 would sell as much as PS2, but the hardware should be well more profitable, so overall it makes sense.
But yeah, the only thing ESRAM gained was the ability to use DDR3 instead of GDDR5. I think that's significant cost savings, at least (whether it's "worth it" is another debate). Others are now trying to say GDDR5 and DDR3 are relatively similar in cost, which I think is ridiculous, but is tough to disprove since GDDR5 isn't sold separately, so will continue. And the only way to prove something about this is if the base X1 significantly undercuts the base PS4 on pricing for most of it's life (or, doesn't). And even that of course, wont prove anything, as we will never know the margins on the hardware each manufacturer is accepting.
A case could be made MS screwed up, but I'd like to see the whole gen play out first (perhaps in 3 years, XOne will have reached mostly performance parity, or at least good enough consumers dont care, or perhaps indeed X1 will end up undercutting PS4 on price for most of the gen).
If they did screw up, it's because of their unhealthy obsession with a small fast RAM cache on the GPU. As bkilian said no other design was even considered. I didn't even love it in 360...