??
It's just as true that MS is selling XS consoles at a price where it's clearly not competitive with the PS5... as it is that the claim that the 2TB XSX is 800$ is totally not true.
XSX 1Tb digital is 549'99€
XSX 1Tb disc is 599'99€
XSX 2TB disc Galactic is 699'99€ (this is a special edition console basically VS PS5PRO 799'99€.)
Clearly, Microsoft is selling its consoles while trying not to lose money on each one, even if it means decimating sales figures. Microsoft has clearly decided they already amortized the Xbox Series gen hardware, and the sales slowdown is being offset by game sales on other platforms.
The decisions regarding the new Xbox Next take this new situation into account, which is why they're focusing on a "niche" premium product with an unsubsidized price, unlike the traditional console, to attract hardcore Xbox fans who make up the majority of current GPU subscribers and are the biggest spenders.
A very powerful and premium Xbox "console," which runs Xbox Studios games better than the "competition" (that now have these games too), with the largest possible catalog on a platform, (perhaps the possible) no online play fees, and which even serves as a benchmark for events and showcases... it's certainly a product that can generate better press and a better brand image (something Xbox needs a lot now) on social media and forums than a traditional Xbox console without exclusives, with a catalog and third-party support that will be always in question, and with hardly any differentiation from what offer a PlayStation in hardware.
In other words, a premium product with low risk for both Microsoft and its potential users, designed to generate revenue from the Xbox store and impulse it .... while selling its games on most of the platforms that were previously competitors.
The strategy couldn't be clearer at this point. It makes perfect sense given the reality of Xbox (multiplatform) and Microsoft itself (separate Windows Gaming and Xbox no longer make sense). How it's executed and how successful it is is another matter entirely.