If the leaked data on it is even close to accurate I can't see it being $500. the ps4 and pro were built on older AMD ch and the ps5 is being built on the latest AMD tech. Even buying in bulk I bet the cpu and gpu alone cost $300. To get similar hardware in a PC you are looking at a Ryzen 7 3700X for $300+ and a RX 5700 for $300+

Consoles are usually sold at break even cost, or even under it. At least in the beginning. Sony and Microsoft get their cut from the sell of games, that is where the profits are made.

This is true, but I still wouldnt rule out the high price yet. Console manufactuerers these days definitely do sell at a loss to get it in as many hands as possible but at the same time consoles are beocmming less relavent than ever, so that strategy might not be optimal. PC and Streaming is the future and both sony and microsoft have acknowledged that these last couple years (sony was a bit slow tbf), though handheld options like Switch will still have their place.