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In my Opinion
$500 is too much for the PS5.
Market analysts, specially those Sony stock/bond holders do not want Sony to launch a cheap console or at a lower price. They are confident that if Sony ask the same amount as XSX, it will sell just as well. To me that is an error.
For example , because an item has a manufacturing cost of $97, doesn't mean the MSRP will be $100. Hundreds of variables come into play determining the final price. Long gone is the era when only hardware and software bring ups revenue. PSN brings a lot of revenue, that already has paid for its infrastructure and can easily hold some to adjust PS5 final launch price. Sony already has a winning formula by being $100 cheaper, they just need to stay true to that path, one that is shared with their vision not long ago discussed about bringing PS5 adoption faster than ever before. If they in fact launch at $500, they risk a fate similar to the ps3 launch. Microsoft can easily match their MSRP, but they wont't. Spencer said they will never be again outmatch in price and performance he meant in having the weak system selling at a higher price like Xbox One S did, but he didn't meant they will eat $100 or $150. If they really wanted to eat that much, we would have seen Xbox One @ $99 and the Xbox One X at $199.