Consoles used to be made in Japan, and they were as cheap and cutting edge back then as they are today (comparatively speaking).
With that said, I welcome whatever measure it takes to move manufacturing back to Japan.
1) Pair down the technology inside the systems
2) Increase the price
3) Make generations last longer
4) Sell them at a cost (as it used to be the case before PS4)
All of these propositions are realistic; I'm not sure they'd be enough to compensate for the increased manufacturing costs.
Of course, consumers' habits are just as important. Buying digital goods, and used when physical is the only option, can help. As far as electronics devices in general are concerned, we should buy new stuff only when the old one becomes unusable, for example, your smartphone stops getting security updates, your tv breaks down etc.