Consumers didactic the prices are a lie, or at least a half truth that exists mostly on theoretical level because we all assume all markers are free and competitive
In the end companies have much more power defining their prices than consumers. We are talking about a oligopoly market with only 3 main console manufacturers, so you either buy one or stop gaming on consoles.
This indeed goes both aways. With current PS5 demand Sony could very much sell it for 800 USD and I'm sure it would still be sold out because the demand for PS5 is humongous. They won't do it, because they don't want to sell the image PS5 is a too expensive machine so once demands for PS5 start to dry out customers will not see Sony is such good eyes and could purposefully starting to avoid the brand
In other hand, I'm on the ship Nintendo don't want Switch to be see as "too cheap". OLED could easily be 300 USD and standard and Lite be lowered in price, but they want to keep perception OLED version is a premium version, even if it's not really "that" premium. It's like those digital platinum editions for digital games that barely comes with new content, but are sold like 20-30 USD more expensive because they want buyers to believe they are premium
