I tend to wait for games to get a bit cheaper before I buy them. For instance Mass Effect which I got for R100 at Incredible Corruption and so forth. A game like Fallout 3 gives you so many hours of gametime that I am prepared to pay more for it. But even then I won't pay R500. I'd rather subscribe to something like EVE Online then and pay per month.
Bioshock is available for R181 now. That's a good price and it makes me buy the game. FEAR 2 for R520 is ridiculous. I won't go anywhere near it. It just makes me angry.
I agree with Grimspoon completely. If we buy games at such high prices then the games will stay at such high prices since they realize that they can get away with it. I will not buy any game that's too expensive. I'd rather wait for it to drop in price.