The original 360 was $300-$400, if I recall things correctly. The original PS3 was $500-$600, therefore, I could say that price does really matter because the 360's failure rate compared to the PS3's is notable. Cheaper does indeed have a correlation to, well... cheaper. Cheaper parts aren't quite as high quality. If they were to make a PS4 and sell it for less than $300 anytime in the forseeable future, I would guarantee that it would either be weak, highly cheaply built, or a combination of both. Sony's new handheld console costs $250-$300, apparently. If the goal is to outdo the PS3 and still sell at "cheap" (Less than $300 for brand new console with the likely power of a PS4 isn't cheap, it's dirt poor.) prices, it just isn't really feasible around this time.
The PlayStation 3 was expensive for a number of reasons. Sony invested heavily into the Cell and Blu-ray. The former which was just costly in its own right and the latter which was most likely a troublesome endeavor, as evident by the manufacturing difficulties (blue laser diodes) persisting until the time of the PS3's launch. The original PS3 models also had the PS2 hardware in them to achieve backwards compatibility. If I remember correctly, the price didn't come down to $400 until they removed hardware backwards compatibility entirely.
Plus, I believe all three consoles are made by Foxconn, as are iOS devices, Kindle, etc. Fact is, all three are using the cheapest components possible. We want cheaper electronics, they use cheaper components and labor.
RRoD was in all likelihood a design flaw.