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They will drop the prices, but my guess is by no more than $50 for each SKU.

And they aren't being "short-sighted" it's rather the opposite. They have already ole over 110M consoles, the userbase they have to secure are already in that 110M. Right now, the PS4/PS4pro probably cost them no more than $180 and $230 respectively to make. So they are making a lot of money from the sale of that hardware, money that would help offset what they would be losing on the PS5.