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Have video games become expensive now?
(lemmus.org)
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There’s some decent arguments in here about how it is cheaper than it ever has been. But I can tell you that even though I make more money than I ever have in my life, I haven’t bought a brand new game in about 4 years because of how much it costs to just live now.
Go ahead and adjust games price to account for inflation, at least $90+, and see how many new games just flop. People will prioritize living over gaming. If suddenly people can only buy half as many games then you will see half the sales.
Well there's also just a lot more games now, and even retro games that have been around are competing (I'm playing RE1 for example, bought it recently cuz I've never played it before)
So I don't think it's intrinsically due to other life costs being high. When you have games like battlebit and palworld and lots of ftp games just saturating the market it's hard to justify charging so much. People literally don't have the lifespan to play all the games that exist and will continue to be created over time.