I always expected $500 because of inflation and how bad Samsung 8nm and TSMC 4N are price wise, but I could see them launching with a $500 and $400 model.
$400 model: The very bare minimum with cheap casing, no Kinect-like camera or other control gimmicks, 256 GBs of UFS 3.1, no HDR on the handheld screen, no tech demo pack-in game,
$500 model: High quality casing, a controller gimmick, HDR on the handheld screen, 512 GBs of UFS 3.1, tech demo pack-in game
Just like stripping everything possible from the base model to get it down to $400.