I figured this would happen but wasn't sure they would actually do it so I left the rumor alone, but it turned out to be true.
Anyway for those wondering Sony never sold the PS5 at a profit, they were selling at a loss since launch
https://venturebeat.com/games/sony-is-selling-ps5-hardware-at-a-loss/
Microsoft never confirmed if they were taking a loss on the X or S, just some rumors.
Before someone brings up the court hearing, Microsoft was talking about losing money on hardware overall, not individually, for example the Xbox One was released to not take a loss on sales, and that still applied when they removed Kinect since Kinect was an addition $100 added tot he price anyway. Now after 2014 when Xbox decides to undercut the PS4, i think they were selling at a loss then, and of course there's the One S which was said to be profitable, and the One X which was said to not be. I think the Series X is likely taking a loss however.
Anyway, this is the second big reason why I think people who keep talking about the PS5 Pro at this point have lost it, because it doesn't make sense. Next gen is only just beginning to start and
we are only just now starting to see games take advantage of the hardware, a pro would add to expenses.
The only major revision we will likely see if any, is Sony trying to make a slim less unique looking model that's easier and cheaper to manufacture.
I don't know about Microsoft with the X, but I doubt the S is losing money. if it was Microsoft wouldn't be partnering with retailers on discounts and game giveaways, especially since it was already selling well. I think at worse they are breaking even.
PS5 Digital should in theory be cheaper to produce than the PS5, but the lack of units being made will likely make that a bigger problem for Sony. I expect Sony to continue limiting how many are made and maybe in another year or two drop the Digital model entirely.
Instead, I see a revamped slim PS5 without a disc drive for $299 in the future. A PS5 without a disc drive has no reason to match the regular PS5 design 1:1 it doesn't make sense.