Cheaper console. The more expensive console would only cost less money over time if I buy a fair amount of games. I probably would buy a lot of games, but it's still usually easier to justify a $60 purchase over a $40 one, than it would be to justify a $600 purchase instead of a $400 one.
For people who buy less than 10 games, the 400 console is cheaper.
At exactly 10 games, they're equal.
For people who buy more than 10 games, the 600 console is cheaper.
Based off the attachment rate for the vast majority of systems, the current model is cheaper for the average gamer, the proposed model would cost them more.
Only 4 systems have that high of an attach ratio: http://www.vgchartz.com/analysis/platform_totals/Tie-Ratio/Global/
Even for the "above average" gamer, there's no guarantee that they would end up buying more than 10 games. So even for the people that would benefit, the benefit is dependent on them for sure buying at least 10 games. I am someone who usually buys alot more games, but life's been pretty busy, so it's been much lower than usual.