Just like I had said before, the ps5 and xbox series X are expensive machines mostly due to change from HDD to SSD, the only way sony could sell it at build cost ist to make the cheaper model 500SSD instead of 1TB. Give people the option, me personally Ill buy the most expensive one, but most people would be ok with the 500SSD.
499 dollars is still a very acceptable price taking into account inflation. My phone cost 1000 dollars, so 500 is not much for a console that's going to give me 7-8 years of gaming.
Yes even if they decided not to take a loss on the price and priced it at break even they would do ok, us longtime gamers will ensure that.
The hardware power to cost ratio has been put on a more even keel since the PS3 launch and while pricing may see an increase for early adopters
with the usual cost savings seen overtime and yearly BF/ holiday sales means most of the later adopters will most likely pay prices inline with todays PS4.