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I can't really agree. Gamers already balk at $15 for awesome games like Castle Crashers or Braid. I think the bigger problem is that the downloadable services really haven't taken off yet. Some percentage of console users aren't even going online yet, and I'd guess others are put off by lack of storage or a dislike of not owning the physical media. Not many games have hit 1 million downloads on any service. The only XBLA games that have, IIRC, are the freebies.

I also hate the idea of user defined prices. 799 points? Fuck that. It'd be one thing if we were using real money ($9.98, say), but I think I'd be more reluctant to shell out for something that's got an odd point value than for something I think is overpriced. Seems to be splitting hairs, anyway. If a game isn't worth 800 points, is it worth 799?