I haven't listened to the show yet but will barge in anyway
While I agree that that the 1200 (£10) point games of today are far beyond the 400/800 pointers of early XBL, I do think it is important to remember the quality of games that you can get for a tenner at retail
Spud plug here. I dont really the quality matching up. And if I remember correctly most games sell half their ltds at a discounted price so there are a lot of buyers who will see them as expensive, myself included.
Mirrors Edge is dead, it was a flop at full price, flop at discunt price and got quite a bit of advertising. There's no point spending good money after bad.
Activision-Blizzard are not a profitable company even taking the WOW money machine into account, nor is EA or any of the larger publishers (not 100% on this). In the end all we will have is the mega-publishers able to fund giant projects and advertising like Halo and MW2 and the self publishing microdev. Similar to the movie industry and natural evolution of industry it seems.