The point is, they don't HAVE to. They could make games cheaper. They could make movies a lot cheaper, too. But they spend a lot of money on stupid shit (graphics, online modes for games that don't need them/excessive actor wages, drugs) and ignore what makes the product actually desirable (gameplay, few bugs/a decent story, acting, etc). What percentage of the budget on these things is just for the hype machine? If the industry wanted to go back to less over-the-top expensive products, they could. But instead of actually changing their methods, they choose to place the blame on other companies, and make the consumer pay for it. Everything is going down this road of make the customer pay as much as possible for as little control as possible. It's lame. It will continue to happen as long as customers let it happen.
But really, games cost too much to make? Make some cheaper games!