A Costly Production
at least $450 to make. This leads to concerns due to the past. Let's travel back in time...
Back in 2006
The tables turned when Sony launched the PS4 for $400 and the Xbox One cost $500, plus the Xbox One had a lot of initial drama and confusion about if games would not be resellable (and there was the Kinect they included whether people wanted it or not). Sony had a great head-start in that generation and kept the pace since then. The price of the console when it launches sets a tone and matters.
Returning to 2020
We return to the present where Sony could release the PS5 at $500 or so, but would that be too much for consumers even with inflation since 2006? What if the PS5 is $500 and Xbox undercuts it at a nice $400 or even $450? Sony may need to have the PS5 be what is known as a loss-leader, where they lose money every time one sells but make bank back through games, accessories, and Playstation Plus subscriptions. It may be better to take a hit now than have a potentially expensive console that results in lagging sales. Plus, everybody loves a good deal.