Very few people pay $1000 up front. Carriers have subsidies and 0% payment plans over 24 months. Apple also offers 24 month payment plans. The console market is much smaller than phone market. 100 million consoles being sold over the entire lifetime over 8 years is considered successful. Apple sells that many phones in two quarters.

There is also a history of consoles not selling well when the price becomes too steep from the Neo Geo for $699 to the XBox that was bundled with the Kinect.