My friends and I always joked about how each generation games went up $10.
Here are new NES games retailing at $55-$70 - http://img96.imageshack.us/img96/4240/90scommercials1324wwwk...
Here are new SNES games retailing at $60-$70 - https://s-media-cache-ak0.pinimg.com/originals/b9/57/24/b957...
Here are new Genesis games retailing at $45-$65 - http://farm1.static.flickr.com/215/523645427_a566d2d110_b.jp...
Here are new PS1 games retailing at $50-$55 - https://s-media-cache-ak0.pinimg.com/originals/08/89/34/0889...
What might be clouding your memory is that as a console generation ages the games might drop in price until a new generation comes in to reestablish the price at approximately $60. It is certainly possible at the introduction of the PS2 that most PS1 games were retailing for less than $50 and then it was repeated when PS2 aged and the PS3 was released, but it certainly wasn't the PS3 that introduces the $60 price point.
Sone SNES cartridges were even more expensive: Chrono Trigger was $79.99
The prices have probably changed a little, sure, but a lot of that is just inflation.
It's an incomplete picture if you ignore the fact that videogames are infinitely more mentally accessible. There's plenty of very cheap, very fulfilling things to do with your time but they don't provide the instant, accessible dopamine hit that movies or videogames do, which put them out of reach for a lot of people.
I don't really watch TV or movies, and I play videogames pretty sparingly. I'm definitely glad I did it, and I find my hobbies now a lot more stimulating and rewarding, but I'd be lying if I pretended it wasn't a somewhat difficult habit to get into.
(I'm defining better as wider and deeper selection of books and ignoring anything else, like other library services, library hours, whatever.)
Of course I could have gone to the library, but I read a lot more if the book is a tap away on my tablet.
In short: you should start reading more books if you want books to hold your attention for longer.
Maybe with the exception of the public library.
As much as I might wish it wasn't the case, I still agree with what you said.
You can go fancy with entertainment, but people who don't have much money tend not to. In that context, $400 is not such a little investment. (Through phone games can be played for free.)
They also require you to be good at it to enjoy it, have slow and painful learning (depending on shape), and require you to be in a group interested in it. Unless you got in to it early on in your life it's not easy to pick up - unlike video games
That's not to say that anything is wrong with sports, because I definitely feel sports are awesome, but rather that I genuinely feel it's easier to jump into gaming than to organize a team sport like a game of basketball at the local park.
Studded boots ain't cheap.
I've spent about £5 on a video game and played for a few hundred hours. Discounting the computer, the only other cost is probably mouse & keyboard wear and tear ... and life.
So if you don't have the money and you have the time you should choose activities that provide the most entertainment for the least $
Previously unemployed people would watch a lot of TV for affordable entertainment, an they probably still do it a lot. However video games can be more cognitively engaging and more social, so they might be actually an improvement.