There is always collusion to consider though.

I doubt you will see price increase for games outside of England.
If the pound stays weak for 12 more months though, price of games are going to be the least of your worries though.
Price of many imported commodities is going to rise too....( in England that is).

And people need to stop getting into their head that Activision is raising price because it's evil.

It's raising price because the Pound has been weak for a significant amount of time and it doesn't look like it will get any stronger soon.....

If you want to blame someone, blame the Citi for playing so much with leverage in it's investments and your country for deciding to snob the Euro.

I stopped buying games when they went over the £30 mark. Anything more than that and I won't buy it. Doesn't mean I won't get it though.

While I accept Activision have raised the price of MW2 largely due to the weak pound I still worry that the increasing development costs will not be able to be sustained with the current price of games. I doubt developers will be able to keep costs at the current level as I don't see the industry performing well if it doesn't continue to progress (whether that be through continued improvement in game production or through innovation).

Very doubtfull.

For one thing as the generation gets older development costs are going down ( developer knows the hardware better and can reuse code from earlier games developed this gen) and install base are growing to a point where releasing games is less risky( releasing games during the first year of the 360 or the PS3 wasn't something that was going to bring any significant amount of money).

I agree with that and I don't expect so see any significant prices changes over this generation, it's the next generation I'm concerned about. With every new generation, average game development cost and time dramatically increases obviously making it progressively harder for companies to break even. The only solutions I see to this trend are either increasing the cost of games, increasing digital distribution to cut third party costs or lots of overpriced DLC.

Games are starting to cost $70 now, I will ONLY pay $60 for a game and even then thats still abit much...

we really need to start boycot companies like - they just announced price of MW2 Prestige Edition for europe - it's 149.99......... FRIGGIN POUNDS. so apparently now, we no longer have 1$=1euro currency. we have 1$=1pound as activision think.
if i remember correctly 1 pound is 1.3 euro and 1 euro is 1.5$. so after all the math Prestige Edition will costs nearly 250$ in europe - yep for shitty NVG we have to pay as much as for the wii and 50$ more than xbox 360 arcade.
it's confirmed - i'm not buying anything from activision if it's not used just to piss on them.

If games go over 70 dollers I'm pirating

It is £120, I have just ordered it. The real rip-offs are the PSP Go $250 = £230 (price not confirmed yet, but very likely) and the standard game being £55 vs $60