The limit is definitely not $400 as some would believe, but there is a limit. Based on historical data, we can see that consoles that failed or had a poor launch year also sold at prices above $600 (NeoGeo, 3DO, XBoxOne, and PS3 to name a few).
Did you know the original Nintendo Entertainment System (NES) launched at $199 back in 1985? That adjusts to over $500 in 2025. The successor, SNES, launched at $199 in 1991, which is still over $400 in 2025.
TLDR data shows demand for consoles are willing to pay more than $400 but less than $600.