Yeah, this is a thing. After a game console had been out for a while and a new one was on the horizon, the "old" model was discounted because nobody bought them in anticipation for the new console.
Believe it or not, it still happens today. Maybe not with game consoles anymore, but you see it with cars all the time. Cars that nobody cared about 20 years ago (2nd gen Camaro, OBS Chevy/GMC trucks, certain 90s Japanese cars, etc...) are skyrocketing in price now because nostalgia and rose-colored glasses.
It's a well-established cycle. Just watch.