Not many would be content with a $400 next gen console that costs $400 to manufacture either. While it's not asking too much for MS and PS to subsidize the price a little, knowing the XBSX specs so far, and what's likely to follow for what we don't have detailed info for, you're looking at something closer to $600 to manufacture, maybe more. Expecting them to take a loss of around $200 per unit is asking a lot. $499 would be a worthy middle ground, where both sides would 'suffer' a little earlier on, but within a year or two max, should be down to $399 where 'everyone' wins again.
As long as both are $499 like you're suggesting, even one being higher yet, it won't be seen as negatively as it would otherwise by people.
Who the hell said that? Certainly not me. I already said I expect a $499 price tag on both ps5 and xsx. With ps5 at a small loss (up to $25) and xsx at a moderate/somewhat big loss (up to $75). And I also said that the mass market won't like that price.
I said that, and I'm just making a point in general, based off of your point.
What I'm saying is people won't be really happy unless PS and MS go out of their way to heavily subsidize the hardware, which would be asking a lot of them. They won't be super happy with a $499 price, but they also wouldn't be happy if the consoles were $399 but were only worth $399 period. You wouldn't be getting all that much more than an XB1X in that case, and who wants that for a next gen console late 2020?
The only part where I slightly disagree is the price, where as I think if both are $499, or one being even more than that, people won't be as negative as they would otherwise. That's not to say they will happily accept it all of the sudden, but they won't be as upset. Now if both consoles are over $499, then people will be angry regardless.