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I have been saying this same thing for over a year now since I saw some of the prices of XBL being 4 to 5 times retail. Even Nintendo is guilty to a lesser extent.

They seem to be doing this so as not to undercut the retailers. I suppose Sony/MS/Ninty just don't want to pickle off their retail partners as they are a big part of the marketing of games/consoles.

This will hopefully become less of a problem when more consumers accept digital distribution as the future and slowly let retail become less important.