[quote name='Roufuss']Because Circuit City can afford to sell the game below cost, Gamestop can't.[/QUOTE]
Actually, if no one buys the game at GameStop because they want to buy it cheaper elsewhere, than Gamestop actually can sell it "below cost". If they sell a few or no copies because of better sales elsewhere, than you bet that they'll have to start selling it a lower price. And if they just sold it $10 cheaper in the beginning, then they would have sold more and made more money in the long run.