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Retailers slash prices if they over anticipate demand and want to move their stock. If a game is basically not selling unless it is on sale than publishers will usually drop the msrp price.

Thats the reason why there are plenty of poorly selling titles that hold their price and plenty of major blockbusters that get sales a few months after release. Nintendo games tend to have very good lifetime verse first week sales ratios and so they usually don't have excessive supply. But theres obviously exceptions.

The wonderful 101 and paper mario sticker star have often had some pretty ridiculous sales for example.