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The argument is ludicrous.
Production costs are rising, but more capable hardware and more advanced dev tools are making game creation easier and more accessible.
The ever increasing number of indie games and game studios are showing than more than ever it is possible to create great games, at lower prices, with reasonable budgets and make profit.
The only reason why AAA publishers want to increase budgets is because they believe they will make more profit that way. Publishers are profit oriented companies, they invest money to make more money in return (it's as simple as that). If company doesn't think a business venture is sustainable it would invest less money in it, not more.

So, there is no need for a price increase. Publishers are just taking a calculated risk since they believe the negative effect in terms of reduced sales volume is lower than the positive effect of higher margins.

In other words, they are taking a bet on your subservience as customers and they believe it will pay off.

edit: btw, that's the main reason why I have put my PS5 purchase on hold at the moment, even though I had the money allocated for it already.

Last edited by freebs2 - on 02 December 2020