Even $499 is a bit high, considering the economical moment the world is living.
I wonder if Sony and MS are willing to take losses to have launch prices lower.
Microsoft is likely more willing to take a loss. PlayStation is where Sony gets a lot of its revenue and profits from, while Xbox is rather small when compared to other divisions at Microsoft.
If anything, history shows that Sony is the one willing to take the loss, not MS. Even just as recently as this gen, MS wouldn't drop the price of the XBO, even though the $499 price was killing it, until they could get BOM to a point where they were breaking even without the Kinect. Then, they could have ended this gen with a bang with a $399 XBO X, but chose not to lose money on the HW. Xbox is just not as important to MS as PS is to Sony. Sony NEEDS PS5 to succeed, even if it means taking a hit at the beginning. MS could just drop Xbox HW tomorrow and not bat an eye.