Top tier hardware was always quite expensive, not quite as expensive as the last 3 generations, but quite expensive - the late 90s to mid 2010s was actually a bit of an outlier in that regard.

And as you say, the modern hardware lasts for years and years. Back in the day your system was outdated in 6-12 months and 2-3 years down the line you would be lucky if you could even launch a new game.