The cost of developing games hasn’t skyrocketed. Developers have more means than ever. Many things that was handcrafted on crappy slow computers then are auto-generated in seconds now.

There’s no massive shipping costs or printing of physical mediums anymore. And no losses if the already printed cassettes or CD’s didn’t sell.

If a game costs hundreds of millions to develop, in this day and age, it’s by design and/or because of bloated companies.