$700 seems unreasonably high for an upgrade to an already very good system. If I needed a new PS5 sure, why not, but buying one just to upgrade seems unreasonable. Charging prices like that for upgrades makes it more and more reasonable to just go with PC gaming and upgrade GPU every few years.
The one saving grace Sony has is their first person titles but how long can they afford to make those exclusives when M$ is starting to make all their first party stuff available on all platforms?