When the next gen consoles were announced they looked like they could be 600$ but of course companies compete and we get more reasonable pricing but sony is a bit of a special case here.
First you get nvidia with their agressive pricing on their new gpu's and this might look odd to some but we've seen this before , the 8800 gtx was a monster of a card back in 2006 and it just obliterated every other gpu
It wasn't a coincidence this was during the launch years of the xbox 360 and the ps3, when ms and sony released such powerfull systems it even pushed nintendo towards new (and old) markets in gaming. Even the lower more affordable versions of the nvidia 8 series (like the 8800 gt) were considerably stronger than consoles.
But don't forget, both sony and ms made major losses that gen because of the major investments they had to make. Ms was more successfull with the xbox 360 in the beginning and kept sony in a chokehold for quite some time but they started getting cocky and invested less in games. That gave sony room to breathe and the exclusives that made use of the raw power in the ps3 gave sony more traction.
At that point ms had also become a megalomaniac, resulting in the horrible launch of xboxone, and resulting in the massive succes of the ps4.
This resulted in ms now being very aggressive, with a service like gamepass, and a cheap series x. Because let's face it 500$ is cheap, and the series s is very cheap.
But sony doesn't have to play this game, the ps4 could be as successfull as the ps2, why on earth would they have to undercut ms. They have the games and the userbase, and it's even better than the ps2 era because people are invested in a social platform as well. You still even have the ps4 pro.
Why do you think they wait this long with pricing, sony was never planning to release this console cheap, they got lucky with the ps4 because of sudden gddr5 price drop, and because the xbox division lost their minds.
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