$500 is too much for anyone other than early adopters. Most won't spend more than $300-$400.
First, this story targeting Sony like it's only their problem makes no sense. If anything Microsoft has a more expensive build with it's bigger APU.
There is no way in hell these new Consoles are less than $500. I wouldn't be surprised if both MS and Sony target $600 this time around, given the expensive BOM we are looking at.
Heck I'd jump at $700 for either if they were compatible with vanilla Windows 10.