Yeah, I don't see this succeeding at these prices. Succeeding in a sense to come close to Switch 2 / PS5 (Pro) levels.
I don't think we could ever expect a specific gaming PC to compete with the volume sold of gaming consoles that have exclusives people really, really want to play.
I don't think the goal here is to necessarily sell a bunch of hardware units, but to create a new product category of devices which buy games from steam, like the steam deck did with handheld gaming PCs.