
This is true, but it's only part of the picture. The problem is that whether something is a fair price or not is a matter of perception, and when you're used to seeing $200, yeah, seeing $500 is going to hurt. There is nothing that can be done about simple human psychology, but it is what console makers must contend with, because their job is to persuade the consumer to agree that $500 is a fair price, not the consumer's job to accept $500 as a fair price, especially in a time when there are plenty of other options. The 3DO in particular was kind of a ripoff, but that doesn't make price complaints over the launch PS3 or Xbox One any less valid.
The other problem is that wages haven't kept place with inflation for the most part, so unless your last name is Gates or Buffett, $500 is still a lot of money for most people even if it's worth what $200 was in nineteen-something, and especially when there are other, much cheaper options. The mobile market, with all the freemium and 99-cent garbage glutting it, is also creating a race to the bottom. When someone tries to put out a good game on mobile platforms, one that's a little more involved and cost a bit more to make than matching three candies, buying darling dresses for your virtual paper dollies, or cutting strings to drop candy in some nondescript googly-eyed creature's mouth, people scream in protest all over the App Store and Google Play. Never mind trying to get those same people to invest $20 or $30 into games like Fire Emblem: Awakening or A Link Between Worlds.