Wishbone: Because if people can choose between an older version at $5.99, and a newer version,
that is virtually identical to the older one, at $49.99, then they might make the unfortunate choice (from the publisher's POV) and buy the older, cheaper version. Very few people would choose to buy both. Therefore, the availability of older licensed titles is a direct threat to the sales of newer titles with the same license.
I don't agree that they're virtually identical. Each installment has its own vibe featuring different cars, tracks, graphics, physics, features and music. I get that this is their justification but I honestly believe they'd make a bigger profit if they made their previous installments available through digital distribution.