Problem is who decides? Leavr it up to them and they will always charge top dollar for their game. Like yearly sport/casino games. Virtually the exact same game full price and loot boxes up the ass. 

All I think when I see these next gen games at $70 is thank goodness for GamePass.

Got to compensate for ps+, ps now, xbl gold, game pass sales lost.
Plus games aren't finished when they release, it's still another year work to get/keep it running.
More and more HW profiles and graphics options need to be supported.

I paid $120 for FS 2020... And they need that money, still so much work to do.

In the end game developers are still overworked and under payed.

Activision for instance doesn't need to pay its stock holders dividends, not every company pays a dividend I'm looking at you Amazon.  If you take even 10% of that 318 million paid in dividends and reinvest that into the 9200 employees and salaries jump up $3456 per employee.

There's some good points there, but to be able to come to conclusion, I also think an argument needs to also have some numbers to back it up. Sure, physical copies are cheaper to make (at least I would assume - of course Blu-ray discs might be more expensive than CDs). On the other hand, all those new revenue streams might not be enough to cover the losses elsewhere. Or they might be, but we can't know for sure without knowing how much money is spent on creating and marketing new games and how much money is being made from new channels such as season passes and microtransactions. I would assume it all also depends on the game, since some games have no microtransactions whereas some are free and rely completely on them.

That said, I'm quite skeptical about recent talks about increasing the prices because of development costs. I expect new revenue channels to have fixed the situation, and I doubt the new generation is enough to really change that enough to really justify increasing game prices. I think it's possible that game prices are being increased because a new generation is seen as a chance to try to do so - and also because it's probably getting harder to come up with new revenue streams that don't anger the consumers.

Game prices should actually fall

Yeah, but not because we pay not enough for games. Because game companies get away with exploiting their workers. If they can pay millions to CEOs at the same time they lay off underpaid staff, this has nothing to do with how well the company does. It has to do with greed.

The $60 price point for a majority of AAA games has been a lie for a long time regardless. When your game already has microtransactions, sponsorship deals, ten different special editions, exclusive content cut out of the game that people need to pay extra for, and a dozen other ways to squeeze money from the thing, that $60 is at best an entry fee, not the price for a full game.

Prices are lower now than 30 years ago.

I think it's more important that we start spending our money in a better way.

Well, I stopped buying day 1 games a long time ago. Unless it’s Halo. They devalue by the month. All it takes is a little restraint and you can game for a fraction of the full cost. Or if I’m lucky enough the games I want end up on Game Pass and I save even more.

Point: If you don’t like the system, don’t be a part of it. Don’t buy day 1.