This is my first post here, and I was wondering, is this really legitimate? The prices for some of these games are really low. How can they charge so little for them?
The truth is console manufacturers sell the consoles to you at a loss due to the fact that the tech being put into them is new and still bleeding edge. They offset this with the fees charged on top of the software (game disc), which is why console games are always higher priced, even when on sale, compared to PC games. In PC gaming, you pay a premium up front by the cost associated with you building or buying a PC rig capable of playing the games you want ($500 or more at a minimum, likely $1,000 if it's your first machine with the added cost of things usually recycled in a new build such as monitors, hard drives, power supplies, controllers, keyboards, mice, etc.) , meaning there is no premium (fee) built into the software cost like there is with the console manufacturers, who need to recoup from selling you a high end machine as cheap as they can up front.
This strategy is known as a "loss leader". With the advent of digital gaming, this divide has become even more stark and obvious. This is why if market share in consoles isn't immediately found, the console can't survive (R.I.P. Sega Saturn), as the software sales aren't creating the "stop gap" necessary to recoup the cost of underselling the hardware. PC games (at least where us CAG's are concerned) are measured in pennies, console games you pay with dollars, lot's of them.