Let's also not forget inflation. Let's compare today's games to the games of the 80s and 90s.
A top-priced game costs $60 today. But then consider the budget that goes into making the massive 3D graphics, including modern rendering and lighting techniques, R+D, possible budget for voice actors (and unlike the 90s, they can't just rely on local talent, some of these games require big names), etc. All that budget is being used on games that cost $60, surely, but adjusting for inflation, a game that costs $60 in 2009 would equal half-price in 1989.
Let's stick with 1989. Back then, new games for the NES typically went for $50. Then, consider that proportionally, game budgets were much, much smaller - even when you adjust for inflation - and then affix 2009 inflation to 1989 prices; that $50 game cost about $85 when adjusted (calculated here: http://data.bls.gov/cgi-bin/cpicalc.pl).
Plus, once you get into subjective arguments, you can argue that the quality of games today has gone way, way up; yes, there's a lot of crap out there, and like some of you, I haven't fully evolved from my 80s self and aren't very good at 3D action/platformer games, or FPS titles. Taken on the whole, the average game today is much, much better than the average game of the 80s was; the crap is still crap, but the ratio is much better today than back then.
It can be argued that the American per capita income hasn't adjusted properly with inflation - that's an argument to itself - but I think that the main point stands: we're getting more games today than twenty years ago, we're getting better games, we're getting them comparatively cheaper than we did in the 80s, and companies are making less money than they did in the long run (on average).
