Now, here’s the part that game publishers conveniently never talk about: distributing games is far cheaper now. We’re usually not shipping pallets of discs that take up loads of space and cost money to physically create, while also having to build in a profit margin for all the middlemen along the way, including for the retailer. We predominantly buy games digitally.
On top of that, gaming used to be niche, now everybody does it. The market is far larger, so they don’t need to charge a lot to still make bank.
Great points! And yes, they're almost never talked about!