Why is memory so darned expensive?!?!?

[Steelmaker]

I am speaking in terms of system RAM that goes into a PC or videogame console. Is the manufacturing process THAT difficult? Are the materials that go into making ram THAT scarce? Or is it simply a supply and demand thing where everybody wants more of it, therefore companies know they can charge out the wazoo for it?

I have never had anyone answer this question for me. It always cracks me up how every generation of gaming console, there is always a limited amount of ram in each system. Eventhough companies invest so much time and money into developing cutting edge hardware, yet the ONE bottleneck on each system is memory. Companies always seem to skimp on it because of cost. Well, ok why does it cost so much?