The whole "Adjusted for inflation" argument also completely ignores the cost of manufacturing chips and cartridges, as well as shipping/storage/point-of-sale overheads. Everyone's gotta take their piece of the pie - developer, publisher, manufacturer, shipping companies, warehouses, physical stores, each taking a good cut of the revenue. Now the majority of sales are digital, and for consoles the only Middleman is Sony/Microsoft (Nintendo literally has no middlemen). Relatively very few physical sales are actually made. PC is only slightly more complicated, with Steam taking 30% of revenue (which most stores did, too, on top of all the other revenue splits along the whole supply chain). The pie is literally developer, publisher, digital storefront (and very occasionally manufacturer/shipping/sale, but it's insignificant now).
AAA companies could argue that the cost of development has gone up, but they literally control that (nothing is stopping them from just spending less time detailing every fuckin tree branch) and still make record profits year over year lol.
I feel like even if anyone told Razorfist any of this, he'd be too stupid to understand.