> I don't understand the market for a device like this at this cost.
I am a software engineer and OSS enthusiast, I operate servers and my home automation system, but I gave up on PC gaming years ago. After a long day of fighting distributed systems, I want my gaming rig to just work. That's why I bought the first PSVR: because Sony offers me a system where I don't have to fiddle with drivers and windows updates.
Price is too steep indeed, but it will go down as the production ramps up. PSVR launched at 400€ in 2016, and I bought it at 200€ two years after that.