Inflation matters if you happen to be the auto and housing market, where prices have gone beyond reasonable. For the rest of us, inflation is ignored.talking about inflation since PS4 as if that should make a more expensive PS5 ok, is rubbish.
Pay doesn't generally match inflation and on top of that, cost of living is way up in many areas, since 2012. Nearly everything is more expensive.
The PS3 and Xbox One were both priced at $500 or more at launch, and both consoles had a bad start. Much worse for the Xbox One where it didn't even make it to the finish line. Also I can build a better PC for $700 with Windows 10, which is only $200 more than what these consoles could cost. Get too high in price and more people will go PC gaming.The lower the price, the better. if these things cost more than $399, it could very well be a slow start.