Yeah man, the prices are unfortunate, but supply and demand is definitely a thing. Items are only worth what people are willing to pay, and I’m fortunate to be able to justify some of my expendable income on growing my collection here and there.
If you really want your head to hurt, look up some of those really popular games sealed and WATA/PSA graded. Old graded consoles still sealed can sell for 6 digits.
I definitely have several of my favorites ripped for a rainy day. It’s definitely not a hobby for everyone. I have more modern emulation machines that can easily run all of my backups, but there’s really no replacement for the real games on real hardware. Just like some people are audiophile vinyl collectors who thumb their nose at Spotify and a pair of ear buds.