Most of the time I consider their prices to be reasonable if $6 or under. My impulse-buy cutoff kicks in around $10 and a "must unquestioningly add value" forced rule around $15.
Some of the indie titles coming in at $15 I've held off on simply because I can buy a brand-new PSP game for the same price as one EG. For games at that price, either they must be
truly awesome enough on the same level as the combination price of a few old DOS games I know for a
fact I love, or they must go on sale. It comes down to a simple cost-benefit analysis. Granted, some of this is unfeasible due to the games being new, but I never feel the need to have something
right away anyways. I can wait.
IAmSinistar: I live in a country where the Walmart phenomenon is killing off decent products and companies because people expect to pay pennies when it should be dollars. This leads to a downward spiral on the whole economy, since you can't pay decent wages to workers who produce underpriced goods. Looking at the overall picture, there are times when a bargain is most assuredly not a bargain.
I noticed this too many years ago. Going further, driving down the bottom line means that employers only have to pay what allows people to live by shopping at places with driven-down prices, in effect, indirectly devaluing the dollar. A vicious circle ensues.
RaggieRags: Common sense seems to say that pushing the prices down to ridiculously low would hurt the industry, but by all accounts the effect seems to be the opposite.
"Despite the fact that Steam sales mark games down to just a small fraction of their usual price, the developers we spoke to don't think these promotions are devaluing games at all. Based on the data they've seen, Steam sales have only been a good thing for their business."
http://www.gamasutra.com/view/news/174587/Steam_sales_How_deep_discounts_really_affect_your_games.php http://arstechnica.com/gaming/2011/07/volume-vs-price-one-indie-dev-describes-steam-sales/
Interesting how things work. Besides added revenue, cheap prices also seem to introduce indie games to a wider audience. Also, it doesn't seem like cheaper prices make people spend less in gaming. The revenue is simply spread around more evenly to more developers. I can see this a good thing for small indie devs.
Well, it's not quite that simple. Valve gives a ton of promotion and these indie dev's are only taking the extra sales to be beneficial in the aggregate. While it works out, because it's basically a "more money = better" proposal, it creates a consumer expectation that isn't often sustainable.