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The OP is about game budgets, and not GTA4.

As far as game budgets go, I think the market can now handle it. The gaming industry has grown to a point where we have enough people to support a 100 million dollar game.

I know you have not played GTA4, but if you had, you would realize where the budget went, and I would say most of it was do to the level of detail put into a sandbox world. A game like Gears of War 2 does not need that level of detail, and thus would never be expected to cost that much in order to produce the same level of production quality.

I think the industry is growing at a respectable clip. In 10 years, we could see 500 million dollar games, and all I can say is I hope I am here to play them :)