I don't remember paying that much for any computer game at that time. In fact, I saw King's Quest VI (the floppy version) for sale at Radio Shack when it first came out for $50, which was right before Christmas of 1992. When my birthday came around (which was in January), I got $50 and rode my bike 5 miles down to that Radio Shack to buy it, despite my parent's warning me it would go down in price.
Sure enough... 2-3 months later, I saw it for sale over at CompUSA for $30... right next to a copy of Quest for Glory II which was marked at $20. I kick myself in the pants not only for failing to listen to my parents advice, but also for not picking that game up (that was the first and only time I saw Quest for Glory II available on it's own).
As for King's Quest VII.... I got it around the time it came out and paid $60 for it. In fact, I don't recall seeing any computer game that went for more than $50 that was distributed on floppies. The only reason KQ7 was $60 was because it was released on CD-ROM and during that time, CD-ROM was the latest craze. I also paid $60 for the CD-ROM version of Gabriel Knight: Sins of the Past (complete with it's funky-shaped box).
Now console games... that's a different story. When Street Fighter 2 was released on the SNES, it was going for $80. When Final Fantasy II was released on the SNES, it also went for $80....