It has to be currency-based. For the first time since the Euro was introduced, the USD and Euro are pretty much at parity. Up until recently, the Euro was worth 15-20 cents more than the USD. In addition, European countries have Value Added Tax (VAT) baked into every purchase. In Germany, VAT is 19%. A PS5 in Germany was 500 Euro, which means that it cost 405 Euro plus tax. When the Euro was worth roughly $1.20, a PS5 in Germany cost $486 prior to tax even be added ($600 with VAT). Nowadays, they would be losing roughly $81 per sale before VAT is added, which has to be why they increased the price.This is a contradiction.
It has been long confirmed that the dollar story didn't hold up when people converted the price increases based on the currencies that saw the PS5 price rise, which ended up nearly all being the same amount which doesn't make sense if it's about strength of currencies alone.
Regardless if it was, Sony has given the PS5 iirc 3 revisions to make it cheaper to produce, I don't think they would do it that much in such a short amount of time if they weren't losing money on the PS5 consoles like Microsoft is Xbox.
Imo, I don't expect any price cuts this gen.