For example, back in the day a game would cost X to make and would sell for Y amount. Nowadays a game would cost X to make and would sell for Y amount. The problem today though is development of technology and expensive costs of X. Games today may sell for more, but they also cost a lot more to make. The cost of development is rising dramatically, whereas in the 1980's you'd have maybe a single programmer. Today it usually takes a team of over 200 people. Thus, Y rises also.
Below, an example taken from arstechnica.com.
"Even after adjusting for inflation, the figures below paint a striking story. The cost of developing high-profile games has increased exponentially over the last few years, with costs for the next generation of consoles expected to continue this trend. Estimates have ranged from a 20% to a 100% increase in development costs for next-generation titles."
Another factor that hits developers hard is the competition, which links in with technological advances. Companies need to keep up with today's advances which costs more money. They also need to be aware of other competitor's consoles and systems to assure that releases are up to scratch.
Okamoto, chief technical officer for Sony Computer Entertainment said,
"Moore's Law is too slow for us," (referring to the long-held truism that semiconductor power doubles roughly every 18 months.) "We can't wait 20 years to achieve a 1,000-fold increase in PlayStation performance."
And speaking of HDRI and advances in TV and Video, What the heck!? I mean, they are trying to get imaging technology as powerful as the human eye. I ask, what's the point? We all have eyes (Sorry blind people) so why would you want a TV that reflects images like your eyes? Why not just... look! there we go, an awesome design already experienced. Go outside! Look at the clouds and the world through your own eyes. Not through a screen that resembles your eyes. How silly and pointless. Billions of dollars gone into this new technology that does something you could already do... for free. Yes it would make gaming experience more immersing but i ask only that people appreciate what they already have. Well aaaaanyway back to the point...*ahem*..
So next time you pick up the new Halo, give a thought to the trouble and hard work that's gone into that game. Remember the advances throughout 60 years! The advances that have changed the gaming world, and the advances that are yet to come.