[JDShu]

Gross cost is basically irrelevant when you are talking about pricing in a perfect competition. The point is that producers cannot set their price because if they set it any higher, somebody else will undercut them.

I think the correct mainstream economic interpretation is that games are highly differentiated, meaning that no game can completely undercut another game because they are never the same. This means that the perfect competition model and argument do not apply and thus MC != MR in the game industry.