For them to end up at that price, the system has to be as expensive or more expensive than the competition which it is not.
You're neglecting the other dimension, how much profit or loss the company is willing to take. I know you're not used to there being more than one side to anything, though, so to make it easier, we'll put it in terms where it's just your heroes; if a low end TV costs Sony exactly 450 to produce, and the PS5 cost exactly 500, they'd price tv higher because they won't have the second revenue stream on that like they do on a console. The question is more whether Sony wants to lose as much as MS on each console sold.