Yeah...N64 prices were HUGE...I seem to remember Turok being £60+.
Even if the talk about these big PS3 game prices are true, it's pretty much guaranteed it'll sell shedloads on pre-order and make the headlines on Newsround.
If a console gets promoted and hyped enough, people will buy it no matter how much it is, even though you'll be able to get it with two games, a memory card and a free microwave in two months.
If people are willing to splash out big money on games, Sony may as well try and get as much money as possible for them...I guess if people are spending a few hundred quid on a system, another 60 or two won't really make that much difference.
It's like buying a new Gillette razor with a blade included for £4, then realising a pack blades costs £8.50...people get attracted to the established brand name, so they'll fork out the big money to get the extra stuff they need.