
Newsweek has tackled the question head-on, turning to analyst Michael Pachter for comment on what's going on with CoD4's low pricing. Pachter summarizes neatly:
COD4 is selling very well, so much so that I think it's been positioned as a loss leader to drive store traffic, particularly at Circuit City. I've seen the same ads, and it is a retailer price cut, not a publisher price cut. There are differences in terminology between how the two cuts are advertised (long story). So the answer is that holiday software sales were great (more from GameStop on Jan 10), and retailers know that they can offer discounts to drive customers to their stores. COD4 has been holding its own at $60...
So retailers are apparently luring customers in with great deals on CoD4 in the hopes of selling them $500+ Wiis and games they don't want. At least it means a great deal for you.
[newsweek.com]


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