I still think they have a 299 box as well, though this could point to a ultra high end box too.
Break even on the super premium, take a small loss on the super low SKU to drive volume, all "subsidized" by increased gamepass on Nintendo. That said I think people overestimate it's immediate impact....it'll be a long-term play. Internet issues are very much still a thing. I have Rogers internet in a major Canadian city and its still a crapshoot some days for me. Let alone the state of internet in Europe and data caps. It's an awesome play, but a longer term one. Not even neccesary "long term" it'll just take some time. I think we'd see the impact more towards the end of ps5