The price is insane regardless that it'll play NES/Famicom games in HD because a PC could do it too and for those that know a NES Toploader can play Famicom games too as well as those Cartridge region converters.
Xbox One isn't worth $500 much less this thing.
What I'd be interested seeing one of these companies do is PSP's UMD disc drive by itself for TVs but I guess there's more demand for an HD NES that costs $500.