Yeah, those are good points and show the other side of the coin. Be interesting to see a breakdown of this stuff (for someone ignorant of production distribution costs in the industry)This is corporate apologism and you see it all over certain subreddits (like the nintendo one in particular where it's fanboy central).
Back in the day the cartridges for games were a huge chunk of the cost. Cost of producing CDs was way, way lower, leading to a gigantic increase in profits once they switched from cartridges to CDs/DVDs. Digital is another GIGANTIC step down (no longer have to print manuals, ship out millions of copies to stores, give a percentage to retailers, etc). They just keep making it cheaper and cheaper to get the game to customers while cheerleaders will be like "BUT INFLATION! COST OF GAMES HASN'T KEPT UP WITH INFLATION, WE'RE RIPPING OFF THE GAME COMPANIES!" Well, game distribution expenses have also gone down astronomically! And sales have gone way up from what they were at 20 years ago, so that kind of cancels out the ballooning production budgets.
They just see inflation and think "yeah, i bet people will pay that!" and do it cause they can, not cause they need to. What they don't realize is inflation has gotten to the point where people have LESS money to spend on videogames, not more, cause salaries aren't going up with inflation.