Raspberry Pi 3B+: $37.34
Case + power supply : $11.99
Controller: $17 (if I weren't using an extant one, but realistically part of the price)
Microsd: varies (but I'd need the same for a Playstation Classic)
Total: $66.33 (more or less)
So, it's not that it cost "so much" as that the Playstation Classic is being sold so cheaply. Looking on Amazon, at least on paper I could get a $30 Android TV box with similar specs, but the reality is I'd be likely stuck with Android (Lakka may work, but it's a gamble). I also chose the Raspberry Pi over the cheaper OrangePi precisely because of the software support--going OrangePi is at best hit and miss given the many models and the questionable support from the various distros.
The point is, not counting the games there's a lot of competitive options against the Playstation Classic, and a large part of the problem with the Playstation Classic is that one really cannot count most of the games.