Image from IGN.com

One thing many people have been noticing with Wii games is that they are overpriced. This has been an unusual concern, since the standard MSRP of $50 is actually ten dollars lower than Wii's high powered rivals. Yet, games on that system, even if they are sub-standard in terms of gameplay, tend to have at least something about them that seem to justify their price in the eyes of reviewers and gamers. If the actual game length is small, for example, high production values give the impression that the $60 price was warranted.

The reason for this is price protection, something that the average consumer does not understand.

Basically, publishers release a game with "wiggle room" for the retailer to lower the price as needed. This is because they do not want Gamestop to send them thousands upon thousands of unsold copies.

So, take a game like Boogie, a recent flop on Wii by EA. Let's pretend that the game cost EA about $30 to make. This game started out at $60 (it came with a microphone). It didn't sell. Presumably, a sale would mean that the retailer would keep about $10-15 while the rest would go to the publisher (Gamestop and other retailers don't buy games outright, they only "buy" them when they sell).

Retailer: Your game isn't selling.

EA: Ok, lower the price by ten dollars. You keep $10 and we'll take $40.

Retailer: Your game still isn't selling.

EA: Lower the price again! Make it $40, you keep $5 and we'll take $5.

Retailer: OK, your game still isn't selling. What's up?

EA: Fine. Just sell it at $30, take a buck or two for yourself and send the rest to us.

Retailer: HEY, IT STILL ISN'T SELLING. We want to send this turd back to you.

EA: Ok. We don't want that. Put it in your bargain bin, sell it for whatever you want, and don't bother sending us any money.

I may not be hitting everything correctly but I believe this is how the industry more or less operates (Anyone who knows more about this stuff feel free to comment). So when a game like Target: terror gets put out at $40, it is probably because Konami wants plenty of room to slash prices if the game doesn't sell right away.

The big takeaway for the average gamer is that if a game you are interested in seems to be priced too high, just wait a bit, that price will come down.