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NextGen_Gamer said:
If it really is ~$450 manufacturing costs, then Sony needs to just bite the bullet and make it $399. A $50-$70 loss on each system is NOT that big of a deal for a multi-billion dollar company like Sony. Keep in mind that until PS4, every Sony console was sold at a loss at the beginning. What scared Sony was the losses on PS3 - but that is NOT the same situation as this rumor is saying. PS3 was sold at $599 (a still ridiculous price), and STILL had a loss of $200-$300 per console. Now that is bad. $50 is not something Sony should be sweating over.

Within six months I bet they can get that $50 loss down to a break-even point. And by holiday 2021, PS5 would be making a (small) profit per console already.

It is a big deal and it would be a $75 loss minimum. Retailers need their profit.