The real thing is once you get into that territory you're competing with PCs that can play a lot more games and don't lock you into a platform. That's why the nextbox is a handheld, they think it will distinguish it from PC. Unlikely, imo.
people have paid that much (or more) for consoles in the past, adjusted for inflation. but you lose the “every middle-class kid has one” market in the process—and like the ps5/unlike the series x, the “adult enthusiast” market will have to believe it’s worth the money
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