I think that is partially what he’s saying. When you price a game at $70, it means that people will have higher expectations of it then a $20-40 game. You’re even expected to justify why it’s worth $10 more than a $60 game.

So you have all these AAA games that had huge budgets, and are being priced at $70, but because of the budget it’s highly risky for the company if it fails. But the high price also means higher expectations, and high expectations/hype will sink a game if it doesn’t live up to those expectations.

Basically you can sell a game for $30, and people will enjoy it for what it is. Sell a game for $70 and it better be perfect.