I bought the S for 299 in 2020 and unexpectedly got my PS5 DE a few weeks later at launch (I signed up for the early 2021 wave). And when I booted up the PS5 I thought it was kind of ridiculous the PS5 was only 100 more. So good luck selling this at 350, the XSS barely left stores at 299 or even 249. Its always been available and even discounted on Amazon etc.
Its a good system mind you, but a PS5 DE is far more powerful and has double the amount of storage. And for GP, well, you need that storage. Though you can offload quite a bit to an external drive, even some enhanced games.