I bought ps5 for 240€ (sold ps4 and 3 for 260 at Gamestop on Saturday).
I would subscribe only to Xbox (10€/month) and not every month.
I'd buy only few games, the rest is on gamepass.
I just bought an OLED TV (lgb955) for 1050€, it'll last for 10 years.
I don't know your age or salary (you don't need to share it) but once you work and don't have children, with an average salary 500€ to play for 7 years are not much.
And still cheaper than a good gaming rig.
Also, I've lived in Sweden for a couple of years and every freaking time I wanted a beer I had to spend 10€. Just imagine a normal night out. Goddamn, I've lost perception of value of money after that.
Thank god stuff is cheaper for me now...
EDIT: I forgot, I'm not buying the Xbox right now. I'll wait for some time and strongly tempted by series s which costs only 300€