The inflation argument is missing the decreased mastering and manufacturing cost trend that was present until (I'm guessing) very recently.
Every computer I've bought and assembled has been less than $3000. Every time I do it, I'm amazed at what I can get for a fixed price. Some refresh cycles, it's a struggle to even spend it all ("I'd like the rest on a gift certificate, Pat.").
From the manufacturer's point of view, I'm guessing innovations in manufacture have allowed the final price to stay mostly constant while ensuring a given profit margin. But consumers AND manufacturers are being squeezed. Studios have to be seeing input costs rising, and consumers are feeling it in the wallet on everything.
I'm not making a prediction here, just noticing. But something's going to give. Probably higher prices AND lower volumes. At least initially. Be funny if a bad economy finally kills media.
