I agree with the op's point, cheaper games do decrease piracy and increase sales. It's a question of Price/demand, and the industry clearly has not adapted to the changes in the curve.
As games get crappier, i'm not willing to pay full price for them. I get all my new games for 17£ or less, which is 1/3 of the retail french price. The only exceptions are good titles like SC2 or CIV5 that I actually get on release.
Moreover, i bough a ton of games through steam just because they were cheap and of some interest.
I also agree with the point that used games are the worst (and devs confirm this with the online tickets). If a used market there is, it should only be user to user, not with an intermediary that racks in a 30% profit. I believe the whole used/renting stuff to by hypocritical when compared to the price of the new item (books, movies, games, for all).
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