Subjectively, video games did get both worse and more expensive over the last 20 years.
But putting that aside, the ratio isn't 1:1. I'd expect the ratio to be at least 20:1 - you can name at most 1 thing that got better/cheaper for every 20 things that got worse/more expensive.
I'd like to see your evidence for video games getting more expensive. Even if they were like-for-like (I'll make a case that the average video game is a far better product now than it was in the 90s), they are approximately the same absolute price today that they were 30-40 years ago, without adjusting for inflation.