Originally Posted by kazbates
It almost seems as if they are taking their pricing model from technology companies where the initial costs of a new type of technology reflect the R&D costs. A new book hits the market - price it high. Once the market has been saturated and publishing costs are recouped - price it low.
Actually, perhaps the Technology companies took their pricing model from publishers. Publishers have been doing this for a lot longer than most technology companies have existed. Publishers advance authors, pay editors, pay for promotion, initial set up and generally reap this back in the higher price of initial release. Printing a book is really a small part of the costs once the setup is paid for.