[Imp]

Which goes to show how flawed the game industry is no expert here but would guess the majority of extra cost goes in graphics.
The proliferation of free or low-cost games on the Web and for phones shows great graphics are not needed.
Kids want bright graphics that grab them.
Adults want clear & perhaps if a strategy game informative graphics.
Yes some games I want high end graphics so its imersive, very high as in near real or it wont work so just stick with clear graphics & an okay light model say for a RPG or FPS. I DO NOT need a light model for a strategy game unless it effects play.
They DO NOT need to be 3D & should only be so if it helps gameplay many games go 3D with worse control systems dodgy cameras etc.
Simply put all the money goes on graphics nothing is left to spend on the game so 9 times out of 10 the game is actually worse than the one it riped off so why buy it.
If the game was cheaper to produce with just okay graphics the publishers could then risk a new format. The truth is there is nothing new out there so of course its dying what you now buy is a game which covers a succesful format from 10 years ago with 3D graphics & possibly fidly controls or an interface that looks nice but is not that user freindly. Thinking about it the game industry is a bit like Vista looks nice but adds no real content taking one step back for every step forward.
Simple example take say FPS or RPG. Start with no weapon or something basic find a pistol or sword get bigger badder weapons to fight bigger badder enemies often along a linear path. There are so many other ways to do this but no same old same old. RTS gather resources & gain a greater variety of units as the game progresses stop please these formats are 20 years old.