Walmart makes a coffee mug for like $2. Louis Vuitton will sell you one for $385. But there's an entire class of coffee mugs in the middle, where you're paying more than it "should" cost, but less than you would for status signaling.
An example is this mug [1]. It's $18, so it's not even close to being a status symbol. It's also a little nicer than a Walmart mug. But I'd be hard-pressed to argue that it's 6x as nice like the price would imply. I suppose you could consider it a luxury good? But in my mind, it feels weird to lump it in with a Louis Vuitton mug.
Playdate feels like it sits right in the middle of the spectrum? I dint think the price is being marked up for status related reasons. But they probably could have made something similar in functionality for a lot less money. It's just a product that's nicer than it "needs" to be.
[1]: https://www.notneutral.com/collections/siblings-lino-mug-10o...