Well you can get a aluminum pc case with a power supply for well under 100 dollars. You can get a high end case for 200. Since the NES inside is virtually worthless and would cost nothing to acquire, 200 bucks would be about the maximum price point. I know that limited runs of stuff costs more, but as the consumer how is that my problem?
I just mentioned this over in EE... it all comes down to the big picture.
Is 500 bucks about right for what they are selling taking materials into account? Possibly (but as I said it still seems overpriced). Do you get 450 dollars worth of quality by buying the gilded nes... nope... plays just as good as a crappy $50 ebay find.
getting back off topic for a min:
I haven't visited this thread in a while, but pbj's graph is extremely misleading. In the 80's Nintendo was literally the only company in most markets, unless you count the practically bankrupt Atari. That means they had almost 100% of the market, so of course they sold more consoles than in the 90's when they had Sega taking a good chunk of the market share and in more modern times when both Sony and Microsoft are sharing the market with them.
In their gc days they were selling roughly 1/3 of the consoles than they were in the 80's with the nes.... and they shared the market with two other companies. So they are going just as well as they did before...... they just have healthy competition now and don't monopolize the market. The graph clearly reflects that. Dips in units sold are directly related to the amount of big name competition they had at the time. Nintendo's just a modest toy company... Microsoft is the largest computer software manufacturer in the world... Sony, while in a rough patch atm, is still the largest consumer electronics company AND film company in the world.
Considering the vast amount of resources Sony and $M can, and do dump into their games division, and compared to Nintendo's still healthy, but much more limited funds... they are doing extremely well. It always amazes me how Microsoft can spend more money than a small State's yearly budget on a new Halo and a Mario game made for a little under a million dollars can wipe the floor with them both in terms of sales and quality of the game.