I disagree.
If the average customer is presented with 3 (or more) price options, they tend to go to the middle. Companies will deliberately scale their services to take advantage of this. The $x.99 trick on prices is another example of leveraging psychology against customers.
In this hypothetical scenario
XsS - lowest price, lowest specs
PS5 - midrange price, much higher specs
XsX - highest price, even higher specs
The problem shows up if PS5 is a big jump from XsS, but XsX is not as big of a jump over PS5. Customers will "settle" for a midrange option that is "good enough" in terms of power. Brand reputation plays another huge role here. An example would be going to a quik lube or a car wash. The cheapest option is $7, the PREMIUM is $9, and the ULTRA PREMIUM is $17. It is likely that the PREMIUM will get the most sales as it is priced only a bit higher than the normal, and for a vanity service people tend to forget the $ cost.
How do you get your customers to make the right buying decision? Columnist Neil Patel explores the persuasive powers of the pricing page.
marketingland.com
Microsoft is hoping to squeeze Sony out by offering the cheapest as well as the most powerful option. This is not a controversial observation. However, it is plausible this will work against them, as Sony offers one unified SKU and Microsoft offers two, in addition to the "middle pick" psychological issue mentioned above.