Of course. Its the exact same with the XSX just a weaker version and likely also with no disk drive.
And if the XSS is $299, there is no way the dis free version of the PS5 isn't going to be $399. Not $499, that may be the disc-based SKU.
That is the perfect pricing scenario that sony will be hoping for. Having a console in the middle of both Xbox consoles just makes the PS5 have more perceived value.