overpriced much for a toy?

No better than a yetti, but $80 or so more.

For that price point i would rather go for something like. http://www.shure.com/americas/products/microphones/motiv/mv51-large-diaphragm-condenser-microphone-for-ios-and-usb

Take an object, strap a 'Gaming' sticker on it. Congratulations, you're now free to mark up the price. Razer in a nutshell. Not that it's the only company guilty of this, Razer is simply one of the companies who abuse it the most.