PS5 was pretty much poised to win the launch window anyway, barring too high of a price. This will cement that dominance even further. The only way I think that Xbox has a good chance is if the Xbox Series X is $400 and the PS5 Standard Edition is $600. So it would basically be Gen 7 price differences at launch all over again.
I think the Standard Edition will be priced at $600, but it won't make a difference. PS5 is still going to dominate. Also, I think most people are going to go for the cheaper, discless PS5. I expect the discless version to be $500.