Yes... PS2 was hiding in the sands in fear of Xbox being a lot more powerfull than it.
The ps2 had the advantage of being a dirt cheap dvd player. Streaming services killed the media advantage playstation had. Even if you factor in 4k bluray, the Xbox 1 S is a cheaper option. Sony's biggest advantage is the time gap between launches.
PS4 had nothing of it and yet sold a lot more... so?
In which case Sony could easily do a price cut on the Neo in response.
Sony might not have made the same deal with AMD+Global Foundries that Microsoft has, meaning their costs might actually be higher.
Microsoft's chip might be smaller and cheaper to manufacture.
Microsoft might be willing to eat some of the costs to shift more units.|
So many maybes, that really, you have no idea if the Neo will be a lower price. ;)
You are surely assuming a lot. So since speculation is useless we can only go for the "real" differences.
If Sony start producing the same tecnology 1 year earlier they will have bigger improvements in cost.
If the power and frequency of the chip is smaller they will have better output rates on the dies.
By being a litle weaker it will drain less power, generate less heat, probably be smaller and cheaper as well (including power supply and cooling system).
All you put isn't exactly smaller cost but smaller margins or negative margins, so final price could be small for MS, but cost won't.