I'm not saying that these companies aren't charging "fair" prices (whatever that means) but for many hardcore gamers their spending per hour is tiny compared to other forms of entertainment. They may buyba $100 game and play to for over 100 hours. Maybe add another $1/hour for the console. Compared to someone who frequents the cinema goes to the pub or does many other common hobbies and it can be hard to say that games are getting screwed.

Now it is hard to draw a straight comparison. Gamers may spend a lot more time playing so $/h isn't a perfect metric. And some will frequently buy new games or worse things like microtransactions which quickly skyrocket the cost. But overall it doesn't seem like the most expensive hobby, especially if you are trying to spend less.

Off-topic: micro transactions are just digital transactions. There is nothing micro about them. I really wish that term would just die

If you're mad that the etymology of "microtransaction" doesn't match its current usage, you're going to be apoplectic when you learn about 90% of English words.

Probably called that because it's smaller than the transaction of buying the game

You would think so, but that’s not how the term has been used for over a decade. It has always been a marketing tool. Any in game transaction is called micro transactions. For what it’s worth most games with so called micro transactions are free. Look at https://www.pathofexile.com/shop/category/armour-effects, 100 coins is $10. there is nothing „micro“ about those prices

It's because it's part and parcel of their identity. Being able to play the latest games, often with their friends, is critical to their social networks.