Yeah, pricing is high. I think Sony and Microsoft are in an interesting position because game prices finally started to budge over the past 10 years. At least here in Canada, prices were very solid on NES and Super Nintendo. I once found a cache of $30 SNES games at Radio Shack and I was ecstatic. Nowdays $30 games are all over the place thanks to Greatest hits and the like. N64 had the highest prices yet but they started to crumble in the face of Playstation's cheap games. With everyone going disc this generation and the market being very competitive cheap games are easy to find on any console.
So just as console video game prices finally start to improve, Sony and MS go and push prices up by $10. The reasoning is sound: development costs are up, up, up! Consumers don't care how much it cost to make though, they care how much it costs them personally.
I'll add that on the topic of people buying games in spite of bad reviews or ignoring well-reviewed games, I recently heard a theory that previews matter more than review to a game's livelihood. That's an interesting thought.