Impress Watch, a popular Japanese press release website, reports that Sony spoke about pricing of PS3 games after the TGS press event, revealing that games will be in the 8,800 to 9,800 yen range, which is about $75 to $84. The prices could even out in the states, but $70 for a PS3 game still isn’t a good sign.
Sony’s reason is the increasing development costs (of course). I could also see that one of the problems is that games are using the Blu-Ray format, which is quite expensive to manufacture at the moment.
The high price of a console is one thing, it’s new technology and cannot be expected to be a bargain, games however, are something the consumers are meant to buy a lot of, and that’s not gonna happen at $70, which could prove disastrous for small time developers (coupled with the rising development costs).
http://digitalbattle.com/2006/09/25/ps3-games-to-cost-75-to-84/
I think this quote from their forums sums it all up:
Ouch… A bit pricey. $80 for a game. Is this the last playstation we will see?