I doubt they’ll make the digital ps5 as cheap as the series s. After all it’s only the disc drive that’s missing, even 100€ ($) less would be a surprise since they probably make a loss with the 499€ already, too.
Oh, I highly doubt they'd even be able to match it, for one because it's not the same drastic difference between models as you say, but also because I don't think they have to. This does set a market though and Sony won't want to relinquish their advantage by being
uncompetitive price-wise, so if it keeps them on the low end of those estimated PS5 prices all the better. Basically, if the PS5 digital is $450 or less, there's a good chance people like me jump sooner or later, if it's more then that becomes tenuous, but then maybe they can't even afford to go below $500 given what's under the hood. I feel like they have to at least sell the digital for $500 now to match the X and try for $550 for the disc version (stay away from $599, count the extra $49 cost per unit to the marketing budget =). Then they can argue their platform is going to be better overall to justify the increase, but if they can get the digital PS5 anywhere between the S and X that's a strong case for the most bang for your buck.
I think MS was pretty smart in reading the room. Lacking a disc drive? Not a big deal, really. But underclocking it and trimming the cost accordingly for a more general audience is going to position them to expand their customer base beyond what Sony is offering.
Yeah, I don't know if it works in the end, we'll see how Sony responds (X-Box "S" is for "SHIT"!), but it's a shrewd move by Microsoft to change the status quo and put pressure on Sony to either roll out something potentially hundreds more than the competition or fuck themselves on the cost. Conversely, the closer Sony can get to that price the easier it is to sell that you're getting more for your money, but at what point is it even worth it to them (either way MS is spoiling their fun =)?
My hope is they bite the bullet of course and I get a cheap PS5 since I don't have strong incentive to get an X-Box even if they were giving them away (hopefully Sony isn't counting on that, but I wouldn't be surprised). That could change though since unlike the previous generation the X-Box seems to have the edge on both affordability and top of the line specs, and more consumer-friendly practices and compatibility with a large back catalog. For all we know Sony won't even be able to match either price point. If Sony ends up with better exclusives again it may not matter in the end, like how PS3 seemingly lost every battle but still eventually outsold the 360, but until those games materialize it's tough being the more expensive and arguably inferior system from launch. It's not going to be the better for cheaper no-brainier the PS4 was.
A limited number of fans care more about 4K than price point.
Generally true overall, but to your example look at how many TVs and other electronics, including consoles, terms like "4K" have sold. It depends on what you're getting for your money, or more importantly what you
think you're getting. There's definitely a market for people that just want "the best" however one defines it, and if Sony can thread the needle between price and that perception, especially with their brand power, MS better have a better marketing strategy beyond, "We're the budget model!” We pay more for Classic Coke than Safeway Select, after all. I can totally see this being Sony's attitude.