Building a very basic system with cheap, bad, off the shelf components is not expensive.
Sorry, you have no idea about hardware development. Just because Hardware is cheap doesn't mean that RD is cheap.
Do you think that development hardware drives RD costs? No, paying engineers does. Do you think that Sony or Microsoft develop their own chips? Again: nope: They use AMD Microarchitectures (Sony won't make the mistake of the PS3 again).
You know what costs RD? Developing controllers does. And guess who reinvents their controllers every generation! Not just hd rumble, like the dual sense: Video streaming, HD rumble, IR technology, etc.
And Nintendo tripled their RD budget from 2003 to 2007 twice:
In 2003, Nintendo declared that $34 million was spent on RD. This figure steadily climbed to $103 million in 2006 and the following year bumped dramatically to $370 million.
Source
Any more bullshit for me to debunk?