For all the people in the PS5 10TF+ camp I propose the following thought experiment.
You're the CEO of Playstation. You're about to decide whether you are targeting 400$ pricepoint or 500$ pricepoint. At the moment, you are a market leader with a giant 2x advantage over your immediate competitor. Your last two devices, both very successful and reasons you are a market leader, were targetting 400$. Playstation ecosystem, dependent on the number of sold units, is a giant source of revenue. If you screw up generation leap, your company will be hurt and you will likely be fired.
How ballsy would you have to be to drop a working strategy and try something new, just because your competition might target bigger pricepoint(and can still try to up you if they really, really care)?
Corporate leaders are rarely of the ballsy kind. They do not play with things that work. And that's why I think they will stick to price, with all the consequences of that.