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Steve from Gamers nexus already did an analysis and found an equivilent PC costs about that much anyway (unless you want a massive ATX case in your lounge). Sony, Microsoft and Nintendo can sell their systems below cost and get it back by forcing you through their store… In fact, thats why the XMBC was so harmful to microsoft, because people could buy heavily underpriced hardware and use it as a media centre (and, that cost Microsoft money).
Since this is an unlocked PC (that even runs linux), it has to be sold above cost, or every Cryptobro/AI-bro will buy them and use and run windows (or whatever). Don’t confuse it with some completely locked down garbage…
Not all gamers are playing 4K Raytraced games. If you look at the charts: https://store.steampowered.com/charts/ the most popular games aren’t that intensive.
Also, we can play games we bought 20 years ago. My Wii U games won’t even run on a switch unless I rebuy them (and the joycon’s on the Switch 1 mostly all drift eventually).
All the games I want to play all run fine on my Rog Ally X. So, even a steam machine is sufficient for me.