Even at $500 we aren't getting a high end gaming rig.
1080 = low end by todays standards mate even while most pc gamers sit on 970/1060/580 gpu's. All those gpu's besides 580 will be hopelessly outdated when next gen arrives.
I have a 1080 ti, can barely run metro exodus and ac odyssey at stable 60 fps on 1080p. and that's with a 9900k 5ghz overclock on all cores with a ssd that runs at 3500/3200 write read.
2060 = a 1080 which is phased out now with 2060 super which is a bit faster then a 1080.
2070 super = about a 2080 / 1080 ti. which is seen as mid gen which will be next gen a 3060.
The 5700 and 5700xt are pretty much mid tier to low gpu's right now and will be low end next series of gpu's.
A ryzen 2 1,6ghz cpu 8/16 core is now already available for 130 i think and its seen as mid gen already, next gen its seen as low end specially the clock makes it more in line with a even shittier 1700 ryzen.
Ram, well any serious gaming pc will have 16gb now already as standard and that will rise up to 32gb pretty fast, with gpu's that sit at 8gb if you are behind its 6gb, that's already more then PS5 is going to offer. A 1070 basically already has 8gb and everything further form that is 8gb. high end sits at 11gb and that's not even high end anymore. 16gb v-ram cards will probably be pushed out next year.
So yea, what's so high end about those boxes? that 5700 card in it will be cut down anyway as it needs to be delivered in a cheapo package that isn't going to be watercooled in any way.
So lets check prices of the most expensive parts
130 bucks for a 1700 cpu
350 bucks for a gpu
80 bucks for memory
So yea that's 560 bucks, lets say Sony pays half of that that's 280 bucks. Add in another year or so and those parts are even more cheaper, so lets say they pay 200 bucks for it because they helped to design with it and probably can make whatever price they want. selling 100 million chips is good business.
Now add all the other stuff towards it which lets say doubles the price for them which makes it 400. they could sell it without profit like the PS4 or a tiny bit of profit and done.
