Games don't drop in value until the retailers have an incentive to make it drop (publishers and developers
never have an incentive for their game prices to drop, unless they are directly competing with retailers via online stores):
1) Someone else is dropping the price to gain more customers (so they buy other products at normal price, and become regular customers)
2) They need shelf space for new releases (people not buying the game any more)
3) Dropping the price for a short amount of time makes people buy it during sale, tell their friends to buy the game, which is then back up at full price. Valve does this all the time with the steam store, and Gabe has a better description of it in
this video.
Are video games too expensive to begin with? Probably not.
I have about $1000 worth of model rail, and $3500 worth of camera equipment (add another $1400 soon), and they're
both just hobbies. Just like video games.