It is quite expensive that is true. You can buy an original PSX or PSOne for as little as £10. And many games can by found for a few pounds. However try buying Wild Arms which will be included with the classic, or many of the other collectable RPGs and other genres now. Some are really silly prices now, although many were always actually commanding quite a lot.

But this classic isn't really aimed at us reteo gamers directly. As you said, it's preying on nostalgia. So many people bought a PSX at time because it was the must have gaming system and they were casual gamers. When it went out of favour they threw them away. Fat forward and they see this and want to play the games again.

Would I buy one? I still own my original working chipped PSX so don't need one. But it connects directly via HDMI and upscaled so that's a big bonus, plus the games are loading from ram, not from a disc, so quicker load times, no disc swapping etc. If it gets hacked so you can add your own games I might be interested. But with 20 games included you have to wonder what the on-board storage will be. Will Sony just make thr storage big enough to fit the included games? 20 games, some like FF7 on 4 discs, so about 32GB storage needed to hold them. That would mean limited space for any more.

Rehashing price, it's about level with Nintendo's recent mini systems, and they sold out fast. Although many were bought out by scalpers flooding ebay with them at higher prices.