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There are 2 things wrong with how XBLA/XBCG/XBO handles pricing of titles:

1) Prices aren't flexible (as per Nathan's argument)
2) Not a big enough selection of 'big' and 'smaller' games. The vast majority of titles are $10. Some aren't worth it, some are worth more. Microsoft needs to take the quasi-Sony route and allow for bigger, better games to be downloadable.

An issue is that, for consumers, it's hard to compare the value of a game like Audiosurf to Halflife on Steam (both are the same price), or N+ to Screwjumper (both are the same price). This may me skewing sales, since some pricing models just aren't flexible.



Back from the dead, I'm afraid.