This isn't true. RRP of PS4 and Xbox games are £50-60 for most games, you can see this as these are the price on PSN as new digital releases. But no retailer in their right mind ever actually charged that (outside of maybe Game). The difference is that for some reason the retailers aren't reducing the price of the game as they normally would to be competitive. 

But for some reason this time they aren't reducing the cost as much. The Game Collection, Shopto, SimplyGames have mere pennies of the price instead of the usual £s.

Value varies per game, yet overall the entertainment value of games is very high compared to the price.

A $70 games costs as much as a for example The Expanse S1 to S3, yet that's well after release.
A single season, for example S1 ST: Picard costs $35 on blu-ray

Some games can provide hundreds of hours of entertainment and are supported for years, yet even a 12 hour campaign provides more 'value' than a single season of a tv series.

This is up from £60 at launch for PS4 games I I expect them to drop to normal levels of around £55 after the dust has settled after launch for retail games. You can still find other third party games for around £45 like AC:Valhalla from Base.com, which is the same for PS4 games currently.

Saying that £70 is not okay for a price for a game imo.

It is only an increase in the launch/base price. It is the premium paid for early adoption. The price always goes down overtime, at least for physical third party retailers.

$60 is too much for a game, and yet they're asking for more now. There is no reason for the price increase.

The issue is often the increase is like 10 quid or so at which point it's not too big an increase and when it drops later on it's often by that amount here the increase is full on 30 or so quid which begs the question not only about what warrants that increase but if they'll try to only drop the price by 10 like before meaning an increase of around 20 remains. It's something I wouldn't put pass an industry that pushed the loot box debacle.

My view on this is that Western AAA publishers are the enemy.  I do not like the short-sighted direction they've been taking gaming to and it is still headed in that direction.  What is that directoion?  High cost.

High cost is not a bug.  It's a feature.  At least for AAA Western publishers, cost is a feature.  They want smaller publishers to go out of business.  That reduces their competition.  Activision and EA can survive just fine in the high cost environment.  Small and medium size developers cannot.  And then costs get so high that they have to increase game prices.

We are at a point where most third party games are either 1) made by big publishers or 2) made by indie developers.  Back during Generations 5 and 6 there were a lot more mid-sized developers.  Today, the middle seems mostly gone.

The simple solution to this problem is Nintendo.  Nintendo has been the main spoiler to the high cost strategy since Generation 7.  Nintendo has been providing viable platforms for mid size developers.  I also think it is a better platform for indie studios.  If I were part of an indie or mid-size development team, I would make all of my games Nintendo platform exclusive.  Get out of the high cost, graphics race that can't possibly be won by smaller devs anyway.  And on the consumer side, well I am a consumer.  And I highly recommend fully supporting Nintendo platforms.  Nintendo is definitely not perfect, but I think they are actually trying to advance gaming.  While AAA Western studios are the enemy and they also hate Nintendo.

Gaming has a viable future lead by Nintendo.  It does not have a viable future lead by Western AAA studios.  And for now, the average Switch game is cheaper than the average PS5 game.

Blame Inflation, a 60$ Game in 2007 would've cost 76.40$ Nowadays

i dont think a 60$ Port of a 7 year old Game would Help in that regard (Pikmin 3 Deluxe)

I spent well over 2000€ on Rocket League. Value is entirely subjective. I pay for things that have value to me, there is no general threshold. There are 80€ games that I would pay 500€ for and there are 80€ games that I would decline if offered for free.