Yes with inflation games are proportionately less, but let's also not forget that wages have stagnated while inflation has ballooned. People literally aren't earning much than they were in the 90s (well, the average person, the inflation money has gone to the dragons). The price of games relative to mean wage is fairly consistent IIRC.
But yeah everything else is pretty true. And we all look back on games as kids with rose colored glasses. I remember when majoras mask was photorealistic to me almost!