You know, I think it would actually be a lot harder to sell a $50 portable game system than a $150 one.
Both price points are in about the same range of disposable income for the target audience.
But $50 is a cheapo, side thing... as junky as the maker felt they could get away with. Not necessarily bad (Personally, I really appreciate things that are made as cheap as someone felt they could get away with, especially games. The cheapo-ness tells an interesting story and sometimes these things absolutely amaze me.) but usually pretty bad.
$150 is a centerpiece. It's a product that delivers at some decent level of quality/aesthetics. From the website I think they nailed that. (It looks like the handheld console you've made out of Lego and then imagined the details of what the real thing that the Lego model represents.)
So the $50 portable game is maybe too crappy to be a centerpiece gift (to another or to yourself), but maybe too expensive to fit in as a second-tier gift (e.g., a Christmas stocking-stuffer).
While this might qualify as "the gift of the year". (Or purchase for self of the year.)
The experience on the cheap device will probably be inferior in virtually every way to the phone you already have in your pocket.
But this device is different. Your phone doesn't have a crank. (Nor does whatever handheld system you may already have). It doesn't look like Lego. It doesn't have a black-and-white screen and it doesn't have a new, unique game coming out every week. (well your phone has seemingly a million games coming out each week, but in a diffuse, general way where you have to discover them for yourself and figure out for yourself if the IAP are too annoying or not, etc.)
Games are about new and fresh experiences so anything you already own and have been playing for 10 years is at a serious disadvantage, despite that it's cheaper to keep using it because you already own it.