I feel like all that will happen is players will continue to move to non-AAA alternatives, or wait longer periods for discounts, or maybe platforms like game pass where they can just play a lot of the new games right away just by having the sub. $70 alone is already very expensive.
It’s not even that everybody is going to stop buying games new, but especially given how tight money is for a lot of people right now, pushing the prices further up will force a lot of people to pursue alternatives for all but the releases they care the most about. I think enough people won’t buy more expensive games that these companies will not see the increased profits they expect from raising the prices.