I don't think that publishers ever said that in-game ads will make games cheaper. Quake Live, however, will be free based on this concept. Also, N64 games WERE more expensive. Plus, you don't realize that games are expensive to make. Look at the credits of any recent game and you'll see countless screens full of names. And people that trade in their games because of the lack of long-lasting multiplayer are not helping. There's a reason why there are so many games with tacked on multiplayer, even when it does not fit. And downloadable games are still at a point where they are overlooked in favor of a huge retail hit. Ikaruga has sold about 35K copies. It probably wouldn't have sold that much more if it was a brand new game. That's only about 250K dollars in revenue, which is enough to pay 5 people 50K a year for 1 year. Not getting it done. We'll see what BC does, but if it sells 50K copies because everyone is playing GTA4, then they lose money on it. You just can't hit it really big with a high budget XBLA game without it being an established IP.
If you're buying used or always waiting for the price to drop to clearance levels, you are part of the problem. If you don't value the games that much, that's fine. But don't be all like "WTF happened to all the games" later on. RIP Sega Racing Studio, Stuntman, etc

