Having a $100 difference between the 2 models will make the digital PS5 look better in the market which will be better for Sony. A $50 difference does not have that big difference. Sort of like how Phones these days have the stadard model and the Plus model.
I think it is even possible to have
discless 825gb (or 412) for 399, disc standard PS5 499 and 1,6 Tb PS5 at 599. So they have a model they take heavy loss upfront and make up on SW, a standard model that they break even or small loss and the premium model where they profit on the HW but expect little sale.
That way they can have a cheap entry model that would twart Series S, a Premium model for anyone willing and the main model would have great anchor as the middle ground.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
Azzanation: "PS5 wouldn't sold out at launch without scalpers."