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Capcom President Thinks Game Prices Are 'Too Low' - IGN
(www.ign.com)
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There are still good AAA releases, it's just that 95% of AAA games are not worth the price.
I would argue the old business model still works, it's just that most AAA games studios don't follow that model anymore. Back in the day, a full priced game didn't have DLC or MTX, was an actual complete game, and focused more on the fun than the profit making. Games tried new ideas, they innovated instead of chasing whatever fad is popular at the time. It's the modern AAA game business model that is the problem and doesn't work anymore.
If 95% of the games aren't worth the price, then there is something wrong with that business model.
Yeah, a full priced game might not have had DLC or MTX, but it was more expensive adjusting for inflation and didn't have nearly the quantity or quality of in game assets as current games do.
And old games definitely chased fads, they were just different fads at the time fed in part by the differences in game economics.