It may be that bad in some households but if it is then that person in your example needs to re-evaluate his lifestyle. Everything on that list is a necessisity, the game is not.
It should be more like:
A) Dinner and movie with the lady
B) Buy some new Blu-Ray movies
C) Save the 60 dollars for COD:MW2
D) Buy Madden now
E) Other entertainment worth 60 dollars
This seems more realistic for me because essentially the 60 should be wasteful money in your budget. So sure you can blame the economy but IMO, you can only blame the economy in regards to people becoming more cautious on what they blow their entertainment cash on.
Alot people (myself included) would rather spend that 60 dollars on something that they feel will be worth it. Games like Smackdown vs Raw and Madden have been rehases for years and I think the consumer is just wising up year after year.
I wouldn't blame the economy like some are blaming just based on the fact that UFC Undisputed(A first time venture for THQ/UFC) sold through the roof while Fight Night R4 didn't sell as well. It's about quality titles and entertainment. Madden is just not there anymore.