There is no reason to compare what NG:DEV does with this thing. Yes their Geo carts are hundreds of dollars, but their Dreamcast ports are like $60 because that's the production cost difference between CD-ROM and carts build of mutiple 24 pin ROMs when you start talking about games that big, much bigger than any cart SNK ever made, IIRC.
Sure, the cart costs are huge, but IIRC, they're basing their business on Neo Geo sales, and the Dreamcast releases are secondary. $60 for a CD is still a nice profit-margin after the COGs.
I'd expect any RETRO VGS prices to be higher in order to cover the higher COGs, and Mike Kennedy's "licensing" fees.
And frankly, if there was a snowball's chance in hell that the VGS would get even a single title as interesting as something from NG:DEV (who's games aren't even that great) even if it were $400, the system would be much more appealing. I don't see anything like that happening though.
Actually, they're one of the teams that I
can see supporting the RETRO VGS.
They own their games, those games are already working on "old" hardware, there's no need to get any Unity licensing sorted-out, and so it's just a case of striking the right business deal ... and apparently they've already been talking together.
The ARM chip in the RETRO VGS should run a Neo Geo emulator quite nicely.
So IMHO, it'll just be a case of Mike Kennedy funneling enough of the Kickstarter funds in their direction as a Development Partner to make it worth their while.