For major releases, I think the market has actually adapted quite well. Consumers are given a pretty good tradeoff spectrum to decide how much a game is worth to them:
If a game looks to you like a good enough value proposition that you're willing to buy it at launch, you pay $60.
If a game looks worthwhile but you don't need it at launch, you can hold off for a few months and someone will have it for $40 (eventually MSRP reflects this).
If a game looks fun but you wouldn't pay more than a budget title for it (and it isn't a consistent bestseller), play other games for a few more months and you'll see it for $20.
The last game I paid $60 for was LittleBigPlanet, just over a year ago. I've played some other great games this year that I'd been looking forward to, but I haven't paid over $40 for a single one.
Now, download-based games are another story. Steam is getting it right on the PC with the frequent sale promotions and bundles, but Sony, Microsoft, and Nintendo barely ever do it. They'll figure it out in time.