Soldato
Consoles if anything are too cheap.
Historically Microsoft have lost money on every console sold until the xbox one. Sony also look to break even these days or make a modest profit of like £10 per console.
Just look at the price of consoles going back 20 years. They got cheaper in the last generation. In fact people were thinking the PS4 was going to be £100 more than what it ended up being launched at.
Buying a console for £400 - having it last 5-10 years until the next gen is ridiculously good value for money when that is the cost of a 2060 super alone these days.
Competition has been healthy in the console sector keeping prices low.
Consoles are sold cheap because MS and Sony make there money on the games. They always have, sell console cheap or at a loss create massive user base and recoup costs on the games and subs. Traditionally console games were twice as much as PC games.
Also all the tieins exclusives and promotions nothing to do with competition there isn't any only two major players. Nintendo failed big with the Wii U but came back with the Switch. Whether you would call them competitive or not unsure but they are massive still in Asia.