I think that they should have deferred it two years for component prices to drop. I had a graphic showing inflation-adjusted console prices a while back. Aside from the Atari 2600, no console has had a price near that level and been successful.
goes looking
https://lemmy.today/pictrs/image/92214dd2-8c37-4df1-8c80-7adb02e3ae4c.jpeg

The highest-priced successful console was the PS3, at $778 in 2024 dollars.
https://en.wikipedia.org/wiki/PlayStation_3
At launch, the PS3 received a mixed reception, largely due to its high price—US$599 (equivalent to $960 in 2025) for the 60 GB model and $499 (equivalent to $800 in 2025) for the 20 GB model—as well as its complex system architecture and limited selection of launch titles. The hardware was also costly to produce, and Sony sold the console at a significant loss for several years. However, the PS3 was praised for its technological ambition and support for Blu-ray, which helped Sony establish the format as the dominant standard over HD DVD. Reception improved over time, aided by a library of critically acclaimed games, the Slim and Super Slim hardware revisions that reduced manufacturing costs, and multiple price reductions. These factors helped the console recover commercially.
But we'll see.