A lot of people keep saying over and over again that Sony will lose money if the PS5 is released at $399, but they'd lose goodwill from many fans by pricing it the same or more than the most powerful console out there right now. If they want to wow people like they've done with the PS1 and the PS4, they will go at a price point that will offer people a greater value despite its pitiful specs.
They are definitely in a pickle right now.
They can't release a week earlier (Nov 3) because that's the day of the US Elections. Releasing a few days after the elections (Nov 5-6) would prove unwise due to the outcome and fallout that may come from it. A few days before Xbox release? Saturday? Sunday? The Monday before? They will definitely have to eat the week later.
Regarding the disc version of the PS5, they cannot do 599 US Dollars this time, not with the weaker console. Unless they showcase GTA 6 on their conference and have some sort of strong exclusivity deal to justify the premium. $499 would seem like desperation to equal their price, like $449. $399 is the death sentence everyone seems to be talking about, but it could be their saving grace as it doesn't kill the momentum going into this generation. While people right now at Twitter are fervently expecting a price announcement, I also believe they expect a lower price than the Xboxes.