Most likely. Industry analyst Zhuge is estimating the current build cost of Xbox Series X at somewhere in the $460-520 range, based on the current cost of parts, with the rumored specs for Series X.
Am I the only one who remembers who Zhuge actually is? Years ago. he started posting in another froum, telling he is a Pakistani PhD student in medicine. I don't know how/when that ended and how he tur4ned into an industry analyst. Quite a strange career change, but I'm pretty sure Zhuge has no clues whatsoever about mass manufacturing of electronic devices and components (or mass manufacturing of anything). He is just parroting numbers he finds on the internet. He is well in line with all those "insiders", working on the principle that if enough people shoot at a barn door, someonw will eventually hit the wood.
Are you sure you don't have him mixed up with someone else?
He's been doing analyst type stuff for a good portion of the last decade.
Retail price is typically twice the production cost. Sony has to take a big L in the beginning here.
Phones tend to make a lot of profit. Consoles tend to about break even, because console makers sell the software and accessories at a solid profit. Whereas phone makers don't sell all the software, instead that goes to the OS makers.
They might decide to lose a small portion of money, but it's not going to be an unusual amount.