[kevingadd]

Historically pricing a game too high hurts sales because many people have a limit of some sort on how much they can spend on games. If a single game costs a huge percentage of that (say 50 or 60%) they are reluctant to buy it even if it's well-reviewed because it might turn out to be bad, and then they have no more games budget left.

Games prices have actually come down compared to the bad old days of paying upwards of $90 for Super Nintendo carts, for example.

It is the case that production costs have been shown to be scalable; hundreds of millions go into developing a game like Bioshock: Infinite or the latest Call of Duty, and hundreds more go into marketing and sales. In practice, it is possible for a publisher to recoup that investment and earn more on top, even if it's really difficult.