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Improve...? Yes.

Greatly improve? Probably not.

Should they do this more often? Yeah.

Everyone who wants Infamous enough to buy it likely already has.

So getting it for free should produce sales.

The likely very few $10 or $15 sales you would of made, or even more likely used game sales, would be outweighed by a 30-60 purchases of the new versions.

It's a measured effect that's been shown with studies on piracy. Hence why piracy studies rarely are able to find any damage and sometimes even show positive benefit.

See Valve when they released Portal 1 for free.