Most games here are $80-$100 new. Usually I wait for them to drop in price, I have hundreds of games to play in the interim.
So whilst publishers are "allowed" to price games higher, I won't be spending more.

Probably not, which is one of the reasons why the current model will be replaced by something similar to Gamepass or PSNow in the relatively near future.

I won't buy a new IP for a games launch price. In a situation like HZD though, when the second game shows up, assuming it's available on my console model, I'll be much more inclined to pay full price right away to make up for the savings on the first. Depends on the reviews of the second game and whether it's worth buying immediately based on what I'm yet to play on hand. Even if I get it later on sale, I'll almost definitely buy the DLC, even if it's not top notch, to make up the difference, but then we're even again come the next iteration of the franchise.
A game (franchise) always has to earn it's worth, and in comparison to others, but should be praised financially where possible when it delivers.

I'd be willing to pay $70 for some games. Most non-Nintendo games I wait for sales, but Nintendo games take forever if they go on sale.

Nope, I'd just wait for sales or price drops on all games..... granted the majority of games I already do that unless it's a really big game like a future Witcher game or FF mainline game.

It would pretty much have you be one of the MAJOR flagship franchises for me, which is to say - Gears, Mario, Borderlands, Zelda, Smash and maybe a few others (like Cyberpunk looks LIT so I'd probably shell out for that). And even then, there would have to be some sweet bonuses. Even $50-$60 I RARELY do these days. 

If it's from Nintendo, yes.

Otherwise AAA games suck ass these days and the far superior Indie games are way cheaper.

I barely do that with new games, my issue isn't the price is the worth. £50 can be fine if I feel I'm going to get the value from it but sadly it's hard to do that sometimes. last games I bought on release were Tekken 7 because it's Tekken and The Outer Worlds. Tekken 7 was good, I do play it from time to time but was lackluster compared to 6, noteable missing characters and modes hurt my enjoyment. The Outer Worlds I bought new but for only £35. I've played it once, the choice aspect of the game didn't seem to entice me that much.

Meanwhile, I waited for a year before I got Horizon and think it's one of the best games ever made. Same with Spider-man, Bloodborne and God of War. I got all of them for £25 or less.

If it's worth it then sure I'll pay full price. I don't mind giving my money to developers that made a game I really enjoy.

I would pay more than $100 for MS Flight simulator, I've already done so in the past. It's one of the titles I trust to stick around for a long time with plenty support and something I'll keep coming back to regularly.

But yep, a 20 hour game I'll only play once, the current CAD 80 price tag is already too high. Cyberpunk 2077 is on my maybe wait list. Well definitely wait since I see no point buying it a few months before the next gen consoles come out.

In the end I've paid CAD 120 for GT Sport excluding keeping ps+ around to play it. 90 at release, 30 to switch to digital (so my kids can also play while I'm playing). It's worth it for the support it gets and I've put close to 2900 hours into that game already. What's that, 4 cents per hour play time lol. That has also saved me tons of money, no time to play other games! Or don't want to pay 80 for a short ish games, race more!