One thing noone ever seems to get is that when people buy a console they get games + accessories as well. How many people leave the store without a couple of games? By the time you add together say 2-3 games and maybe a controller it could be up to $200 extra on top of the console plus any applicable sales taxes.
The upfront cost of this console is perhaps $2-300 vs $4-500 which does make a difference when it comes to outright cost. Why do people forget one significant reason why the Wii was successful? Wii + Wii Sports + Wii Play = 2 games + 2 controllers + console for $299, a magic number.
Tease.