The $429 to $529 price range seems reasonable given that it's supposed to be a high end machine and it falls within range of my expectations that it'd be priced between $450 and $499. I imagine that they'll be probably selling it at a loss, so I doubt they could have priced it $399. I think Microsoft will offer similar price points as well. You have to remember the 360 and PS3 came out like seven years ago. I imagine with inflation the 360s initial $399 SKU price would be about $429 in today's dollars.
My only concern is the rumored sub fee for PS World. If it's like the PS3 where online is free, but you can subscribe to PS Plus for value added content I have no problem with that. If they've turned it into a pay wall like XBLG, I'll probably have an issue. I intend to get both systems, but I doubt I will pay a sub fee for both. If my IRL friends stick with MS next gen, then Durango will probably end up being my online gaming console for playing with friends while the PS4 will be there for just Sony first-party titles, exclusives and any third-party SP multiplats that run better.