Compared to all other products games in the 80's/90's were just as expensive if not some of them were more expensive then games now. Even some consoles were more expensive back then. Why was gaming not effected by inflation?

Technological advances brought prices down for the most part.

If you're asking why people don't pay $100 for a game, I would argue certain games could and do command such a price.

More competition, perhaps. In these days there are three major consoles, two dominant dedicated gaming handhelds, many smartphones and tablets which can be used for gaming, various digital distribution platforms (which wasn't even a thing back then, unless one counts the Satellaview), and various pricing models (free-to-play games come to mind). Only the triple-A games still sell for $60 in this market, and that's due to the ever-rising costs of development.

Technological advances made it cheaper as did a change in storage devices. CD's DVD's etc are far cheaper to produce than the old catridges. I remember paying £70 for Turok Dinosaur Hunter for the N64 when it was released. Most games today are around the £40 mark. Hell I think my parents said they paid around £30 for the original Atari console games. That was the early eighties. So gaming today has never been cheaper.

Hasn't it, though?

Instead of adding to the base cost, developers turned to DLC to get that extra $10 per game

I would also guess going from cartridges to disc based media greatly reduced costs. Besides that a lot of games are going digital, which eliminates shipping cost altogether...

The market grew and the advancement in technology made everything cheaper at a remarkable level.

as was already mentioned DLC has helped Devs increase revenue without the core game price increases. Also there are alot more games being sold now days. So while the profit margin is lower, profits are higher. Also, the average game does not command a price of over 60, and the games that do typically have expansions, subsrsibtions, and DLC to equalize things (WOW, Elder Scrolls, COD, etc)

no the reason is because the market has been expanding so fast that it didn't matter. Each gen has sold so much more than the last, this is gonna stop at some point though.