Two parts:
A) consoles are sold at a loss, so you’re essentially buying $800 of hardware for $500. The loss is recouped by game sales, since the console maker will always get a cut of the game sales.
B) Consoles do not run nearly at the same graphic equivalence as high-end PCs. Sure they can tout specs like 4K/120fps, but that’s with huge asterisks. Like others have said, 4K is done by rendering at a much lower resolution and then upscaling. In addition things like anti-aliasing, texture resolution, shadow and particle quality, post-processing visuals, model complexity, are all sacrificed for consoles. I can manually run those settings on a $800 PC and run just fine at 4K/120 too.
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