It's entirely possible to game on a budget if you're smart about how you purchase stuff. Never purchase on release because it'll be full price, be full of bugs or never live up to the hype. Never purchase consoles on release either. By waiting it out a bit the prices will lower on the retail end, there will be second hand sales all over the place thanks to people who make the mistake of purchasing pre-release or at release, bugs will be fixed by then and you can get a good gauge of the game through reviews. For consoles- generally 1st Gen will be the most expensive and has a higher chance of manufacturing issues with their hardware because they're essentially the first run. Gen 2 consoles tend to be cheaper and more stable because said manufacturing processes have been refined and modified. For example look at the 360- 1st Gen was a nightmare but Gen 2 onwards was fine.
Overall though, best bang for your buck will be PC games over consoles. Steam has sales all the time and same with HumbleBundle which offers games for cheap. Ridiculously so at times. Not only that but PC games generally have a strong modding community which adds another layer of depth to pre-existing games. Skyrim was released years ago and people are still playing it 500+ hours later thanks to said modding community. Then the indie game market has some good titles out there that offer amazing bang for your buck. MMO's can also be a good avenue for free/cheap entertainment since most have gone free to play or pay for base game with no subscription. Generally the ones with pay for base game tend to have more options and little to no pay to win scenarios than most of the free to play.
As for kids who do want the latest and greatest, it's generally best to sit down with them and talk to them. Generally they're really understanding of circumstances and appreciate honesty and having a situation explained to them. Also today's library of games is incredibly vast compared to when I was growing up so there's always plenty of cheap and even free options for them to enjoy while waiting on AAA game prices to drop or get second hand.
Overall though, best bang for your buck will be PC games over consoles. Steam has sales all the time and same with HumbleBundle which offers games for cheap. Ridiculously so at times. Not only that but PC games generally have a strong modding community which adds another layer of depth to pre-existing games. Skyrim was released years ago and people are still playing it 500+ hours later thanks to said modding community. Then the indie game market has some good titles out there that offer amazing bang for your buck. MMO's can also be a good avenue for free/cheap entertainment since most have gone free to play or pay for base game with no subscription. Generally the ones with pay for base game tend to have more options and little to no pay to win scenarios than most of the free to play.
As for kids who do want the latest and greatest, it's generally best to sit down with them and talk to them. Generally they're really understanding of circumstances and appreciate honesty and having a situation explained to them. Also today's library of games is incredibly vast compared to when I was growing up so there's always plenty of cheap and even free options for them to enjoy while waiting on AAA game prices to drop or get second hand.