Did you work with middleware? Build your own engines? How do you explain GoW costing 10 mill to make? And considering you talk about assets I will ask you for what type of games. What were your ambitions? I am going to stick by my point. Saying how much a "game" will cost to make means nothing. You could name the biggest and baddest games and I will ask you how much did you think parappa, gitaroo man, disgaea, indigo prophecy, Capcom vs Snk 2 and many other successful games cost? The design of a game should be based of off several things. But going to school and working with artist and game devs that are now employed at companies like EA, N-Space, midway, Volition, Inc. and a few others, I have seen that game design is all relative. When a project is started how much of the game is already finished? (pet project) How many people working on the game content and assets? What type of game is it, action, FPS, Top down? (affects cost and time of dev alot.) What type of style is trying to be attained?(surreal, stylized, realistic) Procedural generation or all handmade textures? What is the size of the game? What is the focus? Single player or multiplayer? It could go on for days. The bottom line is to say that games have risen in cost this generation only applies to what is trying to be achieved. With the PS3 accepting numerous middleware and Sony giving out EDGE and ICE, and with MS's XNA, there should not be any blanket or generalized statements being made about game dev this time around.
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