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Yeah, all the game companies use that same model. Nintendo is just more stubborn than the other two about having official price drops on their games. You still see sales on them in various retailers (and there are sales on DS etc.--just not a lot as the DS and Wii sale a crazy amount still so sales aren't needed).
But I do agree, there is nothing illegal about using an agency model in current laws that I'm aware of--at least in the US. Most just don't do it as it's not good to try to force pricing on retailers who you depend on to get your product to customers.
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