In the middle of last July, I preordered Madden NFL 10 for Wii, paying $46.99.
The Wii version was vastly inferior to the PS3 and X-Box versions, but that's another matter. As far as Wii football went, it was top of the line: new features and updated rosters. It was released right before the NFL season.
It is now the middle of June, 11 months later. The Super Bowl was played four months ago. A new version of Madden comes out in two months. There is probably less interest in football video gaming now, when football isn't in season.
Yet Madden NFL 10 still sells for ... $46.99.
Is anyone else surprised that the price hasn't dropped? Is Electronic Arts maximizing its profits with this price? People can evade the high price by buying used copies of the game or Madden games from prior years (Madden 09, for instance, is only $18.73).
Perhaps EA's stable-pricing policy encourages people to buy the game when it comes out, because they have seen year after year that the price isn't going to drop a few months later. These additional sales could more than offset the sales that EA is losing by not lowering its price in the interim months between seasons.
Can you think of any other goods that behave this way, with new versions coming out every year? What happens to the price of cars the month before the new models come out?