Depends on the feature set ...

Backwards compatibility is starting to gain more value so I imagine that more consumers will probably start expecting game consoles to have that functionality. Backwards compatibility has benefits for both consumers and developers. For the former, the customers get to keep their built up valuable backlog of games and for the latter, the studios can more easily maintain their tools ...

Hardware accelerated ray tracing is probably going to be THE main selling point of next generation consoles which will incentive developers to start making better experiences thus customers will be convinced that more value is added into their games ...

Just having backwards compatibility and ray tracing alone would probably make the new systems well worthwhile at $500 since it's just all around easier for the developers to author better content for their customers. Faster loading times and better remote play functionality would just be the cherry on top of everything else ...

Inflation has no effect whatsoever on what people are willing to put in a console. 500$ is way too high

I would be okay with even a $600 USD console if it meant a substantial increase in hardware capability.

But $500 USD is okay as well.
Either way, I'll get one on launch.

Some act like it is the difference between affordable and putting a loan against a house.

If 500 is too much for you then so is 400.

500 USD is way to cheap if you consider how inflation work form 2007. Do you want PS5 to be weak console ??? Everything cost money , and the price is reasonable, PS4 is too cheap with just 400 USD. 

Hell the problem with PS3 is expensive because their competitor can do the same thing with much more cheaper price, If Xbox One X is 500 USD and why not PS5 that will be 2,5 times stronger??? 

It is not about being affordable or not and only a difference of $100.

It is a mental thing, people set a price what they think a gaming box is worth. Don't matter what you put in it, they won't buy it.

Now a dedicated gamer in general does not have those kind of stupid mental limitations because they know the value of the specs.

In this scenario we are talking general market. Your common casual gamers.

Compare this to mobile phones, some of them are what $600-1000 now? A lot of people upgrade them every new model release. They believe that the upgrade is justified.

In their head they probably thinking.

- I must have the latest for my social media posts

- Oh latest camera better pictures of my ass to put on Instagram, must have the best to get more followers.

- Oh i can listen to music whilst traveling

- Watch netflix or whatever

- Oh I guess i can still make calls

I would pay more for more beefy specs. Console also last for 4-6 years.

No.

Despite enthusiastic Xbox gamers who go off of zero data, they'll tell you that the $500 One X is doing "moderately well" or some other damage control escapist catch phrase.

I work at an electronics store in Salt Lake City, UT. On Black Friday, everyone was buying PS4 Pro's and Switch's. We sold out of both. Nobody bought a One X - not one damn person through out that day. Those are pretty shitty odds in a city that has a census of almost a million people - even considering that we're just "one" electronics store in a city, there's no excuse for that kind of disparity except for one singular reason:

People, generally speaking, don't want to spend $500 on a console EVEN IF the hardware justifies it. (Which the One X does, cuz it's a beast) And the people that do have already done so by investing that money into a "gaming PC"

The story won't be ANY different if the PS5 and X2 launch at $500 - regardless of how appealing the tech is. Because at the end of the day - it's the kids Mom's that are buying the console if they're 17 or younger.

Yeah, it's often way cheaper. Especially if you don't want to upgrade your phone as soon as your provider allows for it, because then you're basically paying extra for nothing.

Yep most people will buy the phone outright because they know it is cheaper. They sell their old one off.

For those asking why I mention mobiles.

It is all about perceived value what drives the spending cost of a item for the general consumer.

Playing games is not a high need for most of the console sales. Hardcore gamers who value tech over price is a very small market.