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The smart money for PS5 is to release in 2019 at a $399 price point (in NA) with a disc drive designed to read 100GB+ disks.  I still think they are going to lose to Switch regardless of what they do, but this can actually make them profitable unlike the PS3.

Dumb money is they go diskless, or overpower the system so that it's priced at $499+ or release after 2019.  Really dumb money is they get "creative" and bundle a VR set or some other expensive peripheral with every system.  They are going lose big if they do any of these things.  Same with Microsoft and their next system.