Wow, 60 dollars. Here new games are 60 euros, or 84 dollars!
As for what would happen if they became cheaper.. I'd buy more! There are many games these days which are cool, but not '60 euro cool'. So with games like that I always wait till the price gets reduced to 40 or preferably even 30. However, sometimes by that time my interest in the game has dissipated because a sequel or a better game in the same genre gets released, and I end up never buying the game at all. Well, unless I see it for 10 or 15 somewhere in a budget bin, but that rarely happens with good games.
So yeah. There are a lot of good games I never get to play because of the high default price of 60 euro. If that got dropped to 40 or so, I'd buy more games and quite possibly spend more money on games too! Games worth 60 euro are just rare (Fallout 3 is one example, and The Orange Box would have been worth it too, though it cost less (Valve <3)), but there are a lot more games worth 40 euro. Recent example of that for me is Prototype. After reading the reviews it sounds kind of funky, but 60 euro is really a lot of money. I'd buy it for 40 though...