Discounts make digital games more expensive

[Osc89]

RolStoppable said:

With a discount in mind, many developers will choose to offer their games at an inflated price at launch and then proceed to offer it at the normal price once the game goes "on sale".

The initial price isn't inflated, it is in line with the hard copy to appease retailers. They have no choice, as Gamestop etc would pull shelf space for whichever company offers heavily discounted digital sales at launch (where most of the money is made). Later they can bring the price down, as it matters less.