$699 (maybe 799 for a more premium model) seems to be a good compromise given what it would take to build a sufficiently similar PC while being close enough to the PS5/Switch. Xbox is practically dead.

I don’t think it needs to compete on price directly, if it can deliver the polish of a console. It can also play up the angle of being a full blown computer.

You can tell XBox is cooked because Halo was released on the PS5.