I kinda dislike this excuse for the higher prices these days.
While it was pretty valid for the PS3 era and before, the PS4 and the PS5 have both been sold at profit well within the first year. This is just a console tax to make more money from people.
https://www.pcmag.com/news/sony-says-499-ps5-no-longer-sells-at-a-loss
PS4 - 6 months to be profitable
PS5 - 8 months to be profitable(despite the chip shortages as well).