When they are shopping for bread, they also are confronted with higher prices due to inflation:
Did people stop buying bread?
OK, this is ridiculous. While I think ignoring inflation is wrong, you can't compare bread with a luxury item like video game consoles. People need to buy bread, even if they can't afford luxury. In fact increasing prices on basic items like food might cut short expenses for luxury.
Also looking at inflation alone is outright wrong. If inflation grows slower than incomes, then people have more moeny to put on luxury items. If it is the other way around, the people stop buying luxury stuff.
The comparison with past consoles is also faulty, because most of them were bought by a small amount of people. Exactly as you would expect of expensive items. As I said before, intensive gamer like us pay pretty much everything for our hobby, but other people prioritize it lower. Each higher pricepoint leads to lost sales. How much is hard to gauge. But this fight about bread and inflation and stuff does really not help to answer this question.