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Part of it was with the influx of casual gamers. All the new gamers would be turned off by challenging games so they were made easier to be accessible to a wider audience, but in doing so require no skill and are easily beaten.

Also with older games, there wasn't much room to make a long games, so they just made them harder to justify your purchase. Gradually it seems games have gotten easier as the amount of content they can fit on the disc/cart increased.