It offers nothing? The exclusive games don't count? Ease of use?
Sony just finally started making a small profit in their game division. Dropping $100 off the price would cut $100 Million in revenue for every million consoles sold. They could do it but they would go back to losing money.
That's too simplistic a view on price. In Europe it's obvious Sony would only need small counters hence his comment on a game of chicken.
The PS4 is clearly more elastic to price changes than XBOX in Europe and that means Sony doesn't even need to match any MS price drops to achieve the same result - just a small drop in PS4 price would cause a much bigger spike in demand for PS4 than a bigger price cut would for XB1 (probably).
In Europe right now too much price cutting could easily backfire on MS and leave them with a bigger gap than before if Sony was pushed to cutting price.
Best bet for MS is to try for a slow creep forwards with small price cuts that Sony ignores so long as PS4 isn't touched.
Realistically MS isn't in a position for quick fixes in Europe - might seem harsh but that's the reality. If they do try and rush they'll probably do more harm than good and blow lots of money for no gain into the bargin.
Europe is already Sony's for the moment so far as sales and social trends show : it's about the slow recovery for MS here.
US and maybe UK are only two markets they could look to catch up in with any pace and at this point I reckon only the US to be honest. Even in UK they're a fair bit back in terms of pure demand.
They've got a slow trudge ahead of 'em just like Sony and the sooner people stop thinking there's quick fixes and it's all sorted in time for the Holidays the better.
You don't recover from the size of the gap in Europe with a quick price cut : it's just not how market dynamics work. Being cheaper doesn't suddenly make the less popular device theore popular device with so many other factors involved.