Congrats to MSoft for the successful launch of the X.
Having said that, the fact that a $500 console sells well makes me worry a little bit. We shouldn't give companies that $500 consoles are ok, or we might get PS5/X2 in that price range.
There's this thing called inflation man. A 400$ console in 2006 is the same as a 500$ console in 2017. Just like when people complain about micro transactions and paid dlc in games. A new game has been 60$ for how long? 20 years? 30?. It should be 85 or 90.
From my recollection:
N64 games were $50
Gamecube games were $50
PSOne games were $40
PS2 games were $50
Wii games were $50
The Wii U was the first Nintendo console to start selling $60 games, at least in the United States. The Xbox 360 and PS3 were the first consoles to start selling games at $60.
And with the indie game scene taking much of the spotlight in recent years, game prices are all over the board. And on the other end of the spectrum, you have big budget games with DLC now that raises the cost from $60 to $90 for many games.
Maybe it was different where you grew up, but I'm from the USA, where games have only been $60 for a little over a decade.