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Most people here are making good points however...

The real point that people keep talking about is that one of the biggest reasons costs are high because things like graphics are costly.

People here are assuming that graphics will continue to be so costly which strikes me as odd. As tools grow and improve, the overhead in making better graphics will decrease. Perhaps topnotch graphics are not cost-effective on a wide scale this generation, but in the future that may very well change.

There is a finite limit to graphical improvements - the human eye.  Even 1080p is hitting that barrier now...