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thismeintiel said:

Also, keep in mind that Sony isn't going to be making a $375 machine that they will see profit on, or even a $400 machine they will break even on.  Sony has always sold HW at a loss, and the PS5 will be no different.  They will be making a system that will be as powerful as they can for $450-$475,...

https://www.engadget.com/2013/11/19/ps4-costs-381-to-make-according-to-hardware-teardown/

 

thismeintiel said:

...which also includes chips they get at cheaper prices due to bulk sales and buying them directly from AMD, and recoup losses with SW and PS+ sales. 

Why exactly should they get a much better price from AMD than the graphics card manufacturers who also buy AMD chips in bulks? Especially in a market where the demand for powerful chips is much higher than the supply due to crypto-currency mining?

 

thismeintiel said:

And without greatly custom chips, the prices for the HW will drop to where they are at least breaking even on HW after 6-12 months.

Just like the prices for Polaris chips dropped in the last 12 months or the prices for VEGA chips dropped in the last 6 months, right. And don't let us forget the price drops for RAM and flash memory in the last 12 months...