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Games are over-priced? Really?

While this may be a "duh" moment for most of us, its not exactly commen sense in the industry. Its a point of worry and concern, especially for makers of AAA-games.

So, when Gabe Newell (love him or hate him, maybe both), went on the record on DICE concerning some pricing experiments Valve did with Steam and backed things up with numbers? That's pretty, well, wow. This certainly jives with EA CEO John Riticello's belief that the $60/game revenue model will be obsolete within 10 years (if even that).

I'm curious. I've pointed out before that where the PC leads, consoles follow. So, where we're now really seeing increased flexibility in pricing and revenue streams on PC? How will that look on the next generation of consoles? The PS4's and XB 720's?