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thismeintiel said:
I expect Sony to take a hit and launch at $399. MS has the more expensive machine and doesn't want to take a huge hit, so will launch at $499. And if we get that difference in price, and PS5's start flying off shelves, MS is going to pull the trigger on the $299 Lockhart.

Sony actually sold the PS3 at a loss. As a result, (based on the internet talk of the day) it cost them all of the profits from the best selling console of all time, the PS2. We were actually afraid for the future of Sony with threads about stock prices, bankruptcy, liquidating property, etc. 

Sony has more revenue streams these days from PlayStation Plus, PS Now, and maybe a few more that I'm forgetting. But I don't think they are more equipped to eat the profits on hardware than M$. Even the PS4 was said to be profitable on day one.