Bad logic. Well, good logic but it's missing something. A game might be worth $60 to some people but when they see it for $50, it's not hard to see why they'd choose the lower price instead. When you have a choice, you generally choose the one with lower price.
That said, higher prices don't necessarily mean higher sales either. A person might have just $50 to spend on games at one moment so he can't/won't spend $60. And the more expensive games get, the less money he's likely to have for other games. Let's say you have $300 per year to spend on games. At $60 a piece, you'll be able to buy five new games. But at $50 a piece, you'll have money for six games. Of course it's not that simple either, but there's only so much a person will spend on games. I also imagine the threshold to buy games gets higher and higher the more expensive they are.
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