Game productions often do cost enough millions to make it hard to break even at 60$.
FIFA 10 sold 10 million units. That's $600 million in sales at the $60 price point. Madden NFL 25 sold 1 million in just its first week in 2013. A few years ago a couple big AAA publishers estimated $60 million is what it cost to make some of their largest games. ME3 is reported to have cost about $40 million to make.
So yeah, games are expensive to make but they're also profitable if they hook the public. 500,000 sales is large by indie standards, but very tepid by AAA estimations because of what they games cost to make, and what the two expect in terms of profit.
The issue with big publishers is they don't care about a single game, they have a portfolio. That portfolio represents their quarterly earnings. They have target numbers they want to reach for their shareholdes. It doesn't matter if a game costs $30 million to make and on paper makes back $70 million. $40 million on its own doesn't make up the entirety of their portfolio, and will always cover some of their losses.
So they pad their earnings with things like DLC, creating a secondary revenue stream that, if a game is a flop, makes it less of a flop. If it's a hit it makes it potentially a much bigger hit over time. If the game cost very little to make, DLC and MTX are pure profit. If the game was expensive to make, it's a way of recouping some of the excessive costs of development over time, above and beyond what the selling price can actually earn (which is less and less as time goes on from release because gamers expect sales and discounts these days when something is more than 6 months old.)
Publishers are large, multinational entities that have to pay the bills and satisfy stockholders. They use these huge, risky investments to accomplish that. Year to year these gambles fail and they post losses. Which then makes them feel like they have to double down on monetization to make up for the gaps.
I agree with LC that I'd just rather they raise the price. If I like the game enough I'll pay it. And at least I can point to and evaluate a straight dollar amount rather than weaving through these ethical and mechanical minefield we have now where I both feel bad for buying games using practices I don't agree with, and I don't know what effects these profit attempts will have on my gameplay and enjoyment. Unless I wait 3 months and let reviewers go to town, at which point I've not contributed to the release sales and just further create the perception in the minds of big publishers they have to try do something even more extreme next time to drive up sales numbers.........when just fucking stepping back and letting the game speak for itself would be the most sure-fire way to get me to spend money.
But they really can't do that to the base price of the game for fear what it will do to the market. Far better in their eyes to slip back door profit streams in there, to snag the whales or just people who don't like missing out on content. Whether that's release DLC that raises the price of a game to $80+ dollars.....or the slurp slurp slurp feed of MTX over time.