Mr F. said:
Steam.
So I fail to understand your pricing models.
Well Steam isnt that cheap really most games I can buy cheaper elsewhere than Steam on release sure they have good sales but so do other places and in many cases better than Steam as well it pays to shop around.
As for if all games were 69.99 next gen well thats just over the standard price here at the moment and some games push for over that and then some (if for some crazy reason you want to pay 20 pounds extra for a digital copy from the ripoff PSN and Xbox live store).
I remember games from the SNES generation costing 59.99 GBP in some cases here so about 90 USD which continued and even went higher in a couple of cases with the N64, damn cartridges were expensive.
I rarely buy games new so assuming they continue to drop off in price as quickly as most of them do now higher initial pricing wont affect me. But lets say games stayed at 69.99 forever in that case I would just go back to my buying habits of the SNES era and just get 2, 3 or 4 games a year. It would deter me from taking a chance on a game but it wouldnt stop me buying one I really want.
People have been trained by the standard 39.99 GBP price around here for so long that if they tried to raise that most would fail imo (unless you are Call of Duty it seems).