Very good points and I think I agree with both of you. If your value proposition is based on technology enchantment and high-budget production and scope your game will be outdated in 2 or 3 years. Sony stratey of selling a gaming for less than needed only to increase numbers for bragging rights also makes sense, however I lowkey want Nintendo to make the same for their titles. I think most people would give their smaller IPs a chance if they got discounted
Sure Animal Crossing absolutely don't need a pricecut, but I can't see why Astral Chain can't be sold at 40 USD, it will take a while to reach 2 million and is a new IP. More people would give the game a chance if it was discounted.
Problem is the discount approach impacts the returns a game can make, Astral Chain selling 1m at full price likely made more than what some games made selling 3m at bargain bin prices that for Nintendo is more key than numbers being a solely gaming focused company this is why they have discounts as part of their online subscription because they still make up what they lost from reducing the price.