I would have lower prices, or drop the price more often. Like $50-60 for the first 1-3 months, the 40-50 3-5 months after release, 30-40 after 6 months. Then one more drop 15-30.
Keep in mind according to industry analysts the developer makes like 10% of the total sales. So the lower you drop the price the lower the developers profits. Also the retailer wants to make profit and so does the publisher and don't forget the console manufacturer. A developer can make up to 10$ off of each new game sale (According to Pachter) but if they were to drop the price as drastically as you suggest your talking like 2$ per copy.
Then don't forget the legs of the product. Example a game like NSMBW or GTA. The game sells for along time without dropping sales. You cut prices your loosing an awful lot of cash.