I did a breakdown of the Materials/manufacturing cost for Modern Warsfare 2, it costs $1.76 to produce the game box, game art and disk. And they are selling it for $60? What a ripoff! that is over 30x the cost to produce it!! Activision products are overpriced!
I wonder if there is something missing from my analysis. Oh wait, it is the massive R&D cost for developing the product in the first place. Along with ongoing support costs for supporting the infrastructure, advertising budgets and customer support. Oh, and profit, which all companies love.