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"Also keep in mind that digital distribution of normal games would result in the publisher - not the secondary market - setting the standard price for games"


Not really, just as now, the market will set the price, and for convience sake i would pay upto 15 dollars of old games, i am willing to pay that right now with games with the vc on the wii if they are that much. and publishers will not price themselves out of the market, and thay are not always out to gouge, they are just out to make a good profit.