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I also do not see Piracy as the major issue for prices to get this steep. For example, a new game released by... say Astraware will have about 2 full months before a pirated version starts circulating the P2P networks. However the price does not start on $5 bucks, it rockets itself to $19.99 since day 1.
Here in Mexico we have a real piracy problem. You could get a pirated DVD (recorded on a dvd) for about $4 USCY while an original one would cost you about $15. Yesterday I went to a very renamed store and found a big bunch of nice original movies at the same price as a pirated one. Of course I rather buy the original instead of risking my money on a lousy pirated disc.
So if the prices for original products were just a little bit more realistic then piracy would have less chance of making bussiness
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