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Well, I think the fact at this point is Sony could 100% drop it to $199 and continue to profit. Might be able to drop to $149 and break even.

Something tells me they are building up profit because they plan to subsidize the PS5 more than originally thought. They said that they wanted people to switch over as quickly as possible. What better way to do that than launch the PS5 at $399-449? Then, they can drop the PS4 to $199-$249, a $200 difference, and continue to profit on that HW as a few million still pick it up.