A $199 next gen console doesn't make a whole lot of sense tbh. First of all it would seriously fragment the Xbox install base with a huge performance gap between both platforms. Developers won't be able to really tap into those 12Tflops of the Series X and "code to the metal" as everything has to run on a 4TB Lockhart too.
Secondly, people expect a next gen console to be around 399 - 499, so why make it 200? Everybody is familiar with the concept of buyers remorse and "you get what you pay for." I mean there's a reason why people aren't buying $100 budget phones for example, even if they are almost as good as the $600 ones. Products can actually be too cheap for their own good and I would definitely feel underwhelmed if I could buy a next gen console, that's supposed to give me years of entertainment, for the price of one good night of drinking or 3 retail games.
You or I can’t speak for the casuals. They think different then us. The ones who just play the games and buy on price. Especially in a global recession brought on by a pandemic I think many would be interested in a entry level next gen machine. And if you want to upgrade you trade it in.
Let it fragment the install base. So long as development is optimized for each console it makes no difference. Leave your performance gap comments at the door because at this stage in the game it’s FUD.
Is this all just a smokescreen for concern that Lockhart will put a dent in PS market share in less developed regions of the world, not just in NA?