Damn. I used up my mod points already. You make a good point which companies are aware of, they're just too greedy to change. We're paying prices which have been the same for ages, from the days when gaming was a niche hobby and there were fewer copies of games created (which by the magic of supply and demand means they were probably more expensive to make). I remember eagerly shelling out $80 CAD for the first Dark Forces PC game the day it was released. That was unusual - a new release price was about $60, which continues to this day.
Pricing for console games is a little less obvious but I think it's pretty similar to PC game pricing. I remember Atari 2600 games costing about $10-20 (a lot of money for a kid in the 1980s, especially if you save up only to find out your new game is a real shitburger) Nintendo games costing about $50 (an AWFUL lot of money in the late 1980s) and today a new release on any console is $50-70. Factor in inflation and the cost is probably about the same as it's always been.
But even though the cost of making games has increased, the cost of distributing them has dropped drastically. Stamping out DVDs costs pennies and electronic distribution costs even less. I still like getting a physical copy of a game - especially when the publishers put goodies like a special manual or cloth map or figurine in the box - but I would certainly sacrifice that if it meant distribution models like Steam or WiiWare would drive down prices to a more affordable range. I like Steam and WiiWare, but I only buy Steam games on weekend deals (STALKER for $5, w00t) and only use WiiWare for something I really think is worth full price. Electronic distribution needs to be $5-10 cheaper than box copies, IMO.