Quote: "Quote: "I'd expect to pay $300-$400 for a custom made animated model."
Really? A few sales and that would justify the purchase of the modeling software"
Keep in mind the word "custom". Paying a freelancer for a custom model that you would have exclusively is going to cost a lot more. You would typically be paying by the hour. Now a model pack that is sold in high volume is a different story. Price per model is going to be a lot cheaper, at the expense of having models that everyone else has.
Quote: " It makes it sound strange that games are being sold for $20-$50 when they contain models worth thousands in combined value.
"
Doesn't sound strange at all if it's a custom model. Just like in your example, selling a few copies of the game would recoup the cost of the models. And time IS money. If you can be working on other things while the models are being made, then you can release the game quicker, therefore generating profit on it sooner.