I don't think Microsoft has to react to pricing of PS5, they're in a good place with the cheapest next-gen digital console. If I was going to buy PS5 I'd be pissed off having to pay 100e for a disc-drive.. and I wouldn't buy digital console without service like game pass, with new games costing 80e and all.
Going with Xbox is really a no-brainer this time around.
On another topic, Coalition has managed to make a mess of Gears 5 matchmaking again. It's all over the place, I have no idea why they need to reset all ranks after the damn seasons anyway. Hnnngghh..