Xbox 360 Classics Adds GTA IV, Midnight Club & BioShock

We pay the REP these days. Retailers Expected Price. Sony knows for instance despite the RRP, Sony with sell their console at launch with a significant discount. Just because it can. The only item I can ever say I've bought at RRP (being the bargain hunter I am) is the DS Lite. The damn things haven't dropped in price for aeons. Good for the resale value, but bad for the bargain hunter in us.

Jopey has a valid point.
When I read the article I thought it was for media version.

They really need to be selling it much cheaper.

most console owners sell the games on, buy second hand, and swap games amonst friends.

You could probably pick up a second hand copy for about the same price.

£14.99 is a perfectly acceptable price.
The current "bargain illusion" is an unfortunate result created by the stupidity of two sides:
A) The publishers like Activision who just hiked prices up to £55 which is ridiculous.
B) Supermarkets and a couple of other retailers discounting by almost 50%.

This has put people off buying games at release because, firstly, the price is way too high, and secondly, they want to wait and see if some supermarket will drop the price significantly. Ultimately this will have a very bad effect on the game developers, not publishers.

A recent example is Uncharted 2: all around the internet I'm seeing people reluctant to buy it for £34.99, which would have been a bargain price just 1 year ago, and considering it's probably the best PS3 game to date, if I owned the console, I'd get it for that price. However, now the general consensus seems to be "I think I'll wait".

So, to sum up:
Price=Fair
Consumers=Spoilt

Jopey / Letsgo
Pricing strategy would only include a price reduction if market share was threatened (either being lost, or not growing as quickly as targeted)

I would guess that the market share (of total game sales) being taken by Xbox live down loads and Classics is growing at a pretty healthy pace - so, whether its right or wrong, you are unlikely to see the price reduced any time soon. The costs of the respective distribution route will always be secondary to this.