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Game prices are too low, says Capcom exec
(www.eurogamer.net)
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Also, the price has gone down since those days. I remember when NES and SNES games were regularly $80-120. And they didn't have no special collector editions with exclusive content or anything. That was the regular price.
And rightly so. Digital distribution has almost negligible overheads compared to something like cartridges or even CD-s.