One thing I keep pointing out is that things go in cycles. Whomever is the low price winner today won't necessarily be one tomorrow, because as companies gain market share, there is no need to be the lowest and they can raise prices and keep more of the profit. Meanwile, others will undercut them and try to gain some market share so that they can do the same. Some build up enough market share where they don't have to consistently be the lowest, just occasionally. Steam is certainly at that point right now. I suspect that Amazon would like to eventually get there as well, and maybe people here would get upset at that point that Amazon is no longer the lowest. (Just like when people here get upset about Amazon Gold Box deals on the console side.)
Yes, I agree but in the long term the strategy you pointed will hurt the company's reputation. I am not sure if this is a good example but it just came to my mind. Call of duty franchise, everybody knows the story. Prices high but demand is still there. I don't believe this is a good practice of business. You need to think about the reputation that you built in the first place.
For instance Valve started to make huge discounts long time ago. And peope kept registering to steam to get advantage of the sales. Not anymore with the reasoning as sales. It is happening to activision, they are losing customers and they will. It doesn't matter if they come up with a brand new game. People will think what they did with call of duty. Milking the market. Valve built a high customer expectation. If they wont meet the demand they will lose their reputation(Longterm). It is already happening as you can see we check the other sites to get a good deal.
What I am saying if you set the bar high you better keep it up that way with offering good deals to keep the business alive in the long term. Occasional discounts won't help you.