I remember the price of the PS3 was also outrageous in the NA market, though. For what its competitor the Xbox 360 offered it was ridiculous to pay that much for a game console, especially when its launch library was absolutely anemic and only picked up in the latter half of its life. People would rather buy a Blu-Ray player and an X360 than a singular PS3.
And that was before the housing crash and the resulting recession that people are still feeling the aftereffects of, on top of the near-miss with COVID and the general shrinkflation people are experiencing in the US. By all means, selling this for a slight markup over the PS5 would be selling at an even worse margin than before, but the precedent of consoles selling at a bare margin/loss and making up in game sales is a precedent not set by the consumer, only (debatably) enjoyed.
I also generally hate the "but but it's actually cheaper if you adjust for inflation!!!" argument because it disregards every other variable affecting the individual in relation to the economy, and that while the dollar has devalued domestically, income (and as a result, disposable income) has not increased in kind. Everyone that isn't comfortably paying off a mortgage from 2013 is slowly closing in on the poverty line. Lord knows where I'm at minimum wage won't even guarantee you a place to live without splitting rent, nevermind all the other regular expenses associated with living as a working adult.
It should also be noted that the games industry in particular faced a trend of stagnating or gradually lowering in price as the venture became more and more profitable. The current uptick in price is a recent development, and an especially unwelcome one in current times.
