A new report has stated that Sony is considering a limited production run initially for the PlayStation 5. Apparently, 5-6 million units could be made available by March 2021, with the figure being affected by the cost of the console's components that will in turn influence the eventual retail price. A high price would likely reduce demand for the PS5.
https://www.notebookcheck.net/PlayStation-5-initial-production-run-limited-to-6-million-as-high-end-specs-could-lead-to-a-high-retail-price-for-the-PS5-console.461741.0.html
Although it is unlikely to happen, sounds like this is the time for an aggressive pricing strategy by Microsoft. The real issue is that, with the effects of COVID-19 over the economy, now is *not* the time to be a loss leader.
(Hardware cost is a smaller issue, since gaming consoles have a business model akin to razor blades: you make serious money selling exclusive shaped blades -- read game licensing fees, micro-transactions, and subscriptions; the handles are just the baits so that you can begin making money.)