To use this game as an example, let's just say I sold 250,000 copies of No More Heroes at retail price. I've made enough money off the 1^st one to start on a sequel, but the game isn't pushing units anymore, so I slash the price; I slash all the way down to $9.99.

Now, I may not be making ANY money off of this at all, but now I am getting into the hands of as many people as possible, making just enough money back so I can afford the cost to print the Game Disc.

With the NMH userbase slowly creeping up, I push another 150k at a severely low price, bringing my game userbase up to 400,000 people, most in anticipation for a sequel. The numbers may be low, but I have now planted the seeds for what may become a very lucrative franchise, even though it is selling at a dirt cheap price.

I think I take intermediate price cuts ... down to $20, then maybe $15 before $10.

I also wonder though how often these "price drops" are driven by the retailer (which is trying to dump stock) and how often they are really generated/supported by the publisher.

Mike from Morgantown

But there are two important factors overlooked. Many ppl who will buy at lower price point are not hard core gamers.. so they will be buying just cuz they are getting a discount and secondly when somebody is picking a game at dirt cheap price he is not going to be a fan of the series rather he just trying it out, so there is a very little chance that he will become a fan.. Secondly when selling at lower price point you are sort of reducing the value of your game, saying like its a cheap stuff.

If a game has sold some reasonable amount like over half a million or more and than you reduce price than it can be helpful.. but if the series is not shifting unit than i think its better to start a new one.

Sequels to a title (when on the same console) tend to sell less well...