First, I think your friend is right on in his statement - to a point. There's quite a bit of truth to it.
I've found myself looking at a game, thinking 'this looks really good', then seeing a low price and feeling worse about the game as a result.
It's not exactly a rational reaction. But I think it's common and that many don't know they have it.
It also plays into the 'sale price' mentality, how critical sale pricing is generally. People love a sale, the feeling they got a big discount.
It's why pre-Steam people tended to buy fewer games they'd actually play (not entirely by any means but moreso) and with Steam sales, the experience of the 'steam backlog' is almost universal.
I'd say, price the game based on its value to customers, not the cost - you would have plenty of challenges already with marketing and other things to worry about.
Game makers are already struggling with this issue - cost of development versus pricing.
It's why game models have evolved, away from 'expensive to create short-use content' to replayability, 'free to play' models relying on 2% of 'whale' players to fund the game, etc.
Two great games have different experiences with this.
World of Tanks is a great game that got the model effective - and the creator is a billionare reportedly from it.
Spellweaver is also a great game, but have not figured out how to get income right yet, not because it isn't a great game - because of the competition and what people will pay for.