You know, I'm old enough to remember a time when a new release movie on home video was $79.95 (or more). In fact, a quick googling shows that the first movie to be deliberately priced for consumer purchase (rather than selling to, yes, rental stores) was $39.95 in 1983 (Star Trek II: The Wrath of Khan). In inflation-adjusted dollars, that's $90.66 in 2012. And if you also adjust the price of the machine to play it on for inflation, it comes out comparable to the upcoming generation of consoles.
And then the prices started dropping, and profits kept going up, because more and more people would buy movies at $40, or $30, or $20, than ever did at $80. Note that they didn't even need to reduce the budgets of the films, or even their advertising budgets. All they did was drop the price.
Now, that's not really fair as a direct comparison, for any number of reasons: Movies do still have larger audiences, so perhaps volume pricing can be more effective. There's a theatrical release period (though at this point, home video is an increasingly large share of most films' profits). They make a lot of their money on overseas releases, and localizing a videogame is presumably more effort (i.e. more costly) than adding subtitles to a DVD.
Even so: Rentals, used DVDs, bloated blockbuster budgets, and even rampant piracy have all somehow failed to cause the utter collapse of the film industry. Perhaps there is *some* useful lesson that can be learned from them?