If the PS6 or next Xbox launches at $1,000+, I think a lot of gamers will simply stick with their current consoles longer or move to PC gaming. One of the biggest advantages of consoles has always been offering good performance at a relatively affordable price.
Higher hardware costs are understandable, but there is a point where consumers start comparing a console to a mid-range gaming PC. Sony and Microsoft may need to offer multiple models or accept lower margins to keep the entry price attractive.