Why do video games cost so much?

With the ushering in of the "next generation" of gaming everyone has experienced not only increases in graphical capabilities, but prices have increased on the software side too. And so you ask, why do video games cost so much and where is all this money going? Very good question and Forbes has your answer. They did a nice write-up of where this money trail is headed, how much a game actually costs, and talks about the risks publishers and developers take on. And of course they use Gears of War as their example, delicious. It's a very good read and a very good graphical representation of all the facts. Interested? Then check out where your money has gone.