How much do modern video games cost?

Recently, Tekken 8 launched (It’s fantastic btw!) an online store, and I have no problem with it. But the developer mentioned the store helps keep the servers running.

Have video game development costs really increased so dramatically that DLC is what keeps these games afloat?

I thought the initial cost of the game was expensive (large team of programmer-esque salaries for 2-5 years), I have no idea licensing costs for game engines, and servers cost $6000 a month assuming they roll their own stuff (but maybe they don’t…)

So what’s costing video game development to be high cost, and why have there been no innovations/companies etc offering cheaper solutions?