THIS THIS THIS!
Please people stop talking about SNES and Genesis game prices. A Disk is a few cents today, a cartridge was probably close to $10 just for the plastic back in 1992. Also look at how cheap the SNES system was. $80! N64 $150!
I bet you paid close to $300 for your Xbox or PS3 when you got it unless you waited a long time.
Further I remember Call of Duty MW2 was $60 on PC when every game up to that point that I can remember on PC was $50 and the console was $60. After that one release every game was $60 on day one.
I dont even know why y'all focus on the form of the media. Thats not why costs are high. Costs are high because development costs are far more enourmous these days. The average cost of development for top titles was in the few million range, then it jumped to $10million and now its well over $20million with some hitting well over the $50million range.
In terms of huge increases in development costs, inflation and dollar devaluation, games aren't expensive at $70. In fact $50 in 2000 = ~$70 in 2013.
I doesn't help game development costs are at near record highs while game sales are seeing double digit decreases year over year. There are outlier success stories, but the majority of AAA titles haven't exactly faired well the past 2 or so years. It used to be 1million units sold was a huge success. Now 10 million units sold doesn't necessarily guarantee break even on some games.
There are alot of reasons why game development costs have skyrocketed. First, the graphical advancement requires far more artists than during the early 3D days. Second, they try and shoot for 18 month development cycles which is about half of what they used to shoot for, which again causes the need for more staff. It used to be dev teams would be 15-35 people, and at the very high end 50 people. Now 150 is about average, with some hitting 300 or more. Then add in the corprate bloat.
But to be fair to the corporate bloat, game developers by themselves have tended to be terrible at project management and business in general. Thats why the publishers have become as large as they have. There were alot of game developers who were inept at managment and ran their studios into the ground and were then forced to sell.
Price per unit at $70 isn't what people should be bitching about. What they should be bitching about is time value per dollar. With the exception of a handful of titles, the only "epic" games these days are sand boxers, which are relatively few. Everything else is painfully short compared to what games used to be.