[quote name='thrustbucket']
It also doesn't help your case that the Penny Arcade game was among the best selling game ever on XBLA at $20.[/quote]
Not true...and I am so happy that this is the case. While the first week or two for Penny had strong sales, it fell HARD after that. As of last week it has sold only 49 thousand copies, and last week was like number 40 on the sales list with only 600 games sold for the week. It will not even be a top 50 game when it is all said and done.
Dollars brought in are strong for Penny. In fact it will eventually, down the road, top 1 million dollars in sales, because it only needs to sale half as many units as a normal game to get the same dollars, but because Microsoft gets a percentage of the dollars brought in, it looks like the 20 bucks was a mistake. A game with the press, and strong reviews, that Penny had, to only sale 50,000 units shows people are not ready to pay that much for a 5 hour RPG game.
My guess is they drop it in price to 10 bucks after they think enough time has passed to not piss off people who paid full price.
A great selling XBLA game would be Undertow. It has almost sold 1 million games, is still selling over 3000 games a week, and has made almost 10 million dollars.