You're right. Any game that would be priced that high will surely fail and definitely not be one of the top selling games for that system.
Oh wait...
Whether you want to admit it or not, games are cheaper now than they've ever been. The market can handle $70 games again, and it won't surprise me if it becomes the new AAA standard price.
Heh...I was the one that actually uploaded those images, scanned directly out of my Next Gen magazine from '97 and '98.
However, like was stated, all of those were
cartridge games. In those same ads for PSX and Saturn (that I would be happy to upload), there's
not a game over $50.
The statement that games are cheaper now than they've ever been is simply not true, in fact it's the exact opposite.
During the 32-bit (PSX, Saturn, eventually Dreamcast) all the way through the PS2 era (PS2, Gamecube, Xbox) all optical media-based games were retailed (in the US anyway), for no more than
$50, except in very, very rare circumstances. And of course, the PC was the same. Only the N64, very late BIG name SNES, and oddball systems like the NegGeo or 3DO had those ridiculously high prices.
And it's only during
THIS generation we saw the jump to $60, across the board.
As far as this topic goes, I think this is going to be huge. If you're talking about the PS4 retailing for (likely) around $500, $70 a pop for new games, and likely $70+ or more for another controller, is very likely going to limit sales pretty severely, at least if this is an industry wide trend.