This makes be believe the PS4 SS rumors even more so. There is little reason to mess with Pro as is for the next 3 years, if even continue selling it. I would think PS should be able to sell Pro at $299 as is and break even by now, but they likely need to get PS4 on 7nm and shrink it to get it down to $199 and have the hardware be somewhat profitable. So shrink PS4 this holiday and worry about a 7nm Pro later, if it's even necessary, since the $299-$399 market is already saturated, and especially if PS4 is just as compatible with the PS5 as Pro is. A super casual or poorer person simply won't care or be able to afford a Pro, since they couldn't afford PS4 before, so there would be little need to reduce the Pro price, if continue selling it period.
Unless they were to drop PS4 and shrink Pro to 7nm and offer a slim model for $249, which is possible but much less likely.
Worst case scenario, they could have future cross gen games set up so that if they play at 60fps to make sure that PS5 is able to use a worthy amount of it's potential, have Pro run at 1080p/60 and PS4 at 720p/60. This would also be a way to keep selling Pro at a reduced price, enticing existing PS4 owners to upgrade to Pro, if they didn't have the money for PS5, so they could at least remain playing at 1080p/60.
I see them shrinking both. I figured they would want to do the Pro first, but considering the OG model is making up 75% of their sales, they may want to get the price down as low as possible to bolster the dropping sales. My guess is a $249 price this year, but they will definitely drop to $199 for the PS5 launch. And we may see a further drop to $149-$179 before it's discontinued in 2022/2023. The Pro will probably drop to $349 without a revision, but my guess is they also want to get the price lower on it, so it will get one the following year.
They could have a $199 PS4 system for budget gamers, a $299 Pro for those who want a little more power under the hood, and the premium $449-$499 PS5 for those who want next gen graphics. All 3 will get cross-gen support for at least a year or two, so there really isn't a need for them to have a weaker next gen system to compete with the Lockhart. And by the time the PS4 is discontinued, PS5 will see its first price cut, probably dropping to the $399 sweet spot.