I thought 399, but 499 is a perfectly fair price for something this fast.
Compared to the Pro: ~ 45% more GPU, 45% more BW, 50% more fast memory, faster CPU likely with higher IPC to boot, more capable audio processors, 4K BR.
All for $100, or 25% more.
The PC gamer in me would think "that's a fucking steal".
Console industry is price sensitive, I know, but neither the Pro nor Scropio are aimed at these customers. There has to be a market for people who want a faster/better featured console and understand that will cost a little bit more.
If the cost of dropping to 399 was to slash the capability down to Pro levels, run with PS4 assets, lack full 4K media support, then what would be there point in the frikkin machine?