[quote name='FriskyTanuki']Microsoft's Games on Demand and the high prices they expect people to pay for them.
Also, Activision's dedication to high-priced games and special editions (Tony Hawk Ride, DJ Hero, Call of Duty: Modern Warfare 2 Prestige Edition, Modern Warfare 2's price increase in the UK) and comments about raising prices even more if they could.[/QUOTE]
To be fair to MS, I've read that they were bullied by retailers to keep their direct downloads at the same MSRP as retail, because retailers were worried that they wouldn't be able to compete. Basically, several retailers were going to refuse to stock physical games if they were undercut.
Eventually, things will get better.