I agree about everything in your first point. I hadn’t previously considered that the novelty of a new technology would necessarily increase have disproportionately high initial cost.

That said, I feel like any calculation of cost against how many hours played is entirely subjective. Your suggestion of $0.75 / entertainment hour is quite different than what I consider ideal. Games will vary genre to genre, person to person, platform to platform.

A person with limited time might exclusively play shorter titles, or maybe just multiplayer titles. A person with significant free time might spent hundreds of hours replaying an RPG.

To be incredibly broad, I would say that games shouldn’t cost more per entertainment hour than half of what any given person earns at their job - but even that is quite subjective and should be taken with salt.