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I think most games are over-priced for the value/entertainment they provide. I really only think RPG games (which are typically longer than the average game) or games where you plan to play multiplayer are worth their price.

That said the development costs have gone up which would either mean (a) more expensive games or (b) less content for the same price.

As an aside, I think some developers focus too much on graphics rather than providing a solid and lengthy game experience. Infamous SS looked beautiful but it was a short game, particularly when taking into account that it was an open world game which by its nature lends itself to a lengthy gameplay experience.