Hell I don't think that's all that expensive at all.
$275 for a Vs. Kit? That's a steal compared to what most kits cost. Of course it was just chips/art.
750 or whatever for the whole kit, but that would have included a pcb, a wiring harness, a control panel, sideart, a bezel. Also a great deal.
If I were an operator, I would have been all over that shit. You get everything you need to make a brand new game for $1000 bucks, and then can swap it into brand new games every few months for $275? HELL YEAH That's some Rock Star shit there. Nintendo's kind of known for that.