They say Microsoft decided on that price when they released the Xbox 360 in 2005.
But actually it was a communion with all the large third parties that settled, and continue to maintain the industry standard at that price.
It used to be 59,99 prior to 1997. But in order to be more competitive, Sony dropped the price of all PS games to 49,99, and the rest of the industry just followed. The reasoning back then was that, CDs were so cheap to manufacture, the 59,99 price tag was unjustified.
The reason given for the increase in 2005 was the starting of the "HD era", as touted by Microsoft. Development costs for games were going to increase too much and they did, so the price had to be higher. I don't think that came from Microsoft actually, but the third parties. They were the ones that demanded it, and likely are the ones keeping it at that level.
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