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That's what a lot of people said for this generation. If you would have gone on eBay and looked how much the PS2s were selling for after the release, you would see there are tons of people willing to pay $500+ for a gaming system. It's a lot of money, that's for sure, but they do that to get as many as they can then, and when they are ready for the price drop everyone who had been saving up can now get it.
Hell, the Nintendo DS is $200 for a portable system and I bet it sells great. That's how much the GC was when it was released. It's an ongoing cycle. The gaming industry is on a high right now and they are just trying milk it out.
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