On the other hand the price paid for games has dropped massively, especially when indexed against inflation. Partly this is helped by digital distribution, but

On the other hand the price paid for games has dropped massively, especially when indexed against inflation. Partly this is helped by digital distribution, but by creating a more direct relationship between the publisher and the customer, and drastically reducing piracy and eliminating reselling the required price per unit to make a profit as a game studio is really small. I've paid $5 for iOS games that gave me vastly more hours of enjoyment than games that I used to pay $50+ for. For years those who supported the developers were subsidizing those who weren't. This is happening less now, and it's a more efficient market.