With the digital PS5, I think sony can and is willing to take a much bigger loss than most can imagine. Don't forget that with the PS3 sony was taking a $250+ loss per console and at a time that hey didn't have PS+ or digital sales.
My estimates have sony taking as much as $70 loss on every PS5DE sold if they are aiming for a $399 price point. But if they really want to kill off MS, they could price the PS5DE as low as $349 and be taking like a $120 loss per console sold. With the added benefit of growing their install base faster than any PS console ha ever done.
Probably helps that NAND flash prices have dropped drastically during this pandemic due to oversupply. Though that probably has more to do with why sony could increase their fiscal yearPS5 order o 10M and less to do with them pricing the PS5DE at $349 lol.
It could be both, let's say something like ok if you can make the price drop from 50 to 40 bucks I'll buy 10M instead of 5M.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"