Shifty Geezer said:But the profit margin, and hence takings, would be much less. eg. On a £40 game, say £5 is development costs, £5 licensing fee, some more for marketting, the publisher takes something like £5 and the retailer the rest. At £20, there's still some £12 or so costs leaving less for the publisher and retailer. Retailers could certainly take a cut in profits, but that'd be against the business grain.
Personally I don't mind paying more for a game that's worth it. If a £50 game offers 50+ hours of gameplay, that's a pound an hour.
Profit margins per game would be less but in total I dont think so ( and if you think some may buy 3X more they would be higher )
Put that into perspective, what other pastimes are so cheap? How much would you have to pay for an hour of tennis or golf? Hour much does an hour of cinema going or clubbing cost? What about a meal out? I'd rather more of the money go to the devs, so we won't see talent studios going bust whle games retailers expand their international penetration, but I must say games, when sensibly bought, researched before purchasing instead of impulse buying off the shelf, often excellent value for money.
Some (or many) may not be able to buy any game at that price.
This way a lot more people that cant buy any game may be able to buy, so old gamers probably buy more, plus new costumers.
Anyway good points.