In this day and age of economic downturn, people are holding on to their hard-earned greenbacks. For some, the $60 price tag on new gaming software is a bit too rich for their blood and – as if sensing their trepidation – Signal Hill analyst Todd Greenwald says it might be on its way out. Greenwald points to this trend using retail and publisher-supported price reductions during the past holiday season (Mirror's Edge
, Madden NFL 2009
) as examples of what could become stationary in 2009.
Consumers might be smugly smiling at the possibility of future software price cuts; however, such a move to counteract slowing sales would only be a brief riposte. In the long run, it would cut the industry deeply and would be "devastating for margins." That means more of this
and less of that
. In the end, it's a double-edged sword for both the industry and consumer alike.