One major misconception people often make is that they assume they represent the average person. You won't pay $1,000 for an all-digital walled garden console, but there are a bunch of people who just buy the next console to keep playing Fifa or Madden or whatever, and don't pay any attention to any of this. Sony is banking on those people continuing to buy their products regardless, allowing them to make more money charging more for cheaper products, even if they lose some of their more well-informed consumers in the process.