Then just make it 449$ at launch?

Do remind there's a 10-20% retailer's share on top of it plus shipping costs. It would need to be closer to $599 to break even at launch.

But then again, Sony was eating up a $40 or so loss with the PS4 back in 2013-2014, so yeah.

Edit - also add a small but not insignificant $10-15 for the manufacturing/labor costs.

I am more than OK to pay 500$ for a competent system. Considering that high-end phones are mostly on offer at 800$ when they launch, I think 500 is not a huge investment for a system that will last you 6-7 years, and actually have a resale value.

They need expensive cooling parts for the 9.2 tfs.

Or perhaps they want to ensure a more quiet machine than the Pro. I wouldn’t read too much into that until we get more info

Well if China thing spirals out of control or hampers manufacturing supply chains like it already has then you can expect a huge initial shipment of a thousand consoles for initial launch.

It would then turn into a lottery for the rich and famous like sports athletes putting down millions of dollars for a launch console so they can boast on social media how privileged their kids are to have such a great parent.

Definitely. PS3 was £425 back in the day but that was met with criticism, PS4 was £350. Pound is slightly weaker now and with inflation and expectations, i don't think anyone would bat an eye at £400 or even £450. I'd happily pay those if it comes with a big SSD.

from Bloomberg :" The ongoing coronavirus outbreak has had no impact so far on preparations for PlayStation 5 production, they said. The company has yet to decide how many PlayStation 5 units it will make in the first year, " 

Well, we also have a reliable estimate that the XSX's BOM is $460 - $520. Unless MS is spending their bucks on another Kinect or some exotic RAM solution (which, to be fair, has happened in the past), it doesn't seem like Sony is buying anything ressembling or exceeding  a ~ 360 - 400 mm2 APU. This is broadly consisent with what leaks have stated about these consoles (as in being fairly similar except for a larger GPU on the XSX).

460 to 520 is Zhuge estimation, not a confirmation . Also Sony usually pay less due to some parts are manufactured by Sony it self, and Sony also has better bargaining. There are others X factor that we still don't know. For example there are other bargaining beside money could happen behind the scene like tech bargaining, patent bargain, long term research and other bargaining payment that could happen. Beside Zhuge considered PS5 as high end along with Xbox X, while lockhart low to mid.  I can assure you both will be the same. Also 9.2 teraflop are not possible in every way . Bigger APU is much more cheaper then small but faster. Especially on console.