Some details in the article feel a little misleading, but I'm sure the knowledgeable folks here don't need a rundown. I will say though that it's interesting how the gaming consumer's perception of cost has changed over time.
Even allowing for all that adjusting for inflation, we have come a long way from the days when the 16-bit consoles had settled into a $99.99 price that reflected the gift for your kid at Christmas time dynamic going on with games at that time. Now that more, if not most, gamers are adults or young adults, paying hundreds for a console is less shocking to the common consumer's sensibilities than it used to be.
When I purchased a Saturn for hundreds back in the day, my brother, who was 12 years older than me and therefore coming from an earlier perspective, was shocked that so much money could be spent on a console just for games. Now, we have consoles coming up that will cost as much as $500 and people seem less surprised. I wonder if producers still dream of establishing the equivalent of the ultimate set top box, or will everything go to cloud processing with true consoles just a memory? If so, I will kinda miss tangible products and pretty consumer packaging.