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My guess is that Sony will not go the route of taking a loss and it will sell the PS5 at 449. Sony brand is very strong and they hit it out the park with games there is no need for them to take a loss on each console.

MS on the other hand definitely need to come correct on price so if they do have 2 consoles then you will have a 299/499. MS will heavliy promote their All Access and subscription with 25$ for Series X and Gamepass Ultimate. A deal like that would be hard to pass up especially for new buyers who get Halo, Gears, Forza, Ori and all other MS first/second party games for that price.