@bored_and_agitated: Maybe not the best idea to link to a product on store that also sells nazi shit (edit: sorry, that came across snarkier than I intended, you probably just didn't know. But just a heads-up, that store also sells nazi shit.)
The high initial price tag includes the ability to play Sega Saturn, Playstation, Sega CD, and TurboGrafx CD games from the start. If you tried to find these 4 consoles separately in their original form you will definitely be spending more than $400. And you can dump all your games onto the console as well!
You can also do all that for free on the computer you already have
bluelander's comments