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I feel like no one has yet mentioned another reason why other publishers tend to drop their game prices much faster: the rest of the modern industry is so tied up in the sales of DLC to drive profits that publishers often use the heavily discounted base game as a Trojan horse to get it into your home and get you to buy the game's DLC along with it.

That's how games like NBA 2K can go on sale for $3 in the eShop, and Dragon Ball FighterZ is constantly marked down by 75%. They've already written off the price of the base game to try to make their money from DLC sales.

Nintendo games aren't nearly as reliant on DLC sales and primarily stick to the traditional model of making profit from the base game.