Titanium: For instance, Call of duty 2 was still priced at $20 at most retailers.
Elenarie: A lot better than having 95% off sales few months after release. Yes, it is more expensive, but it is keeping the value on software, whereas most of today's games have almost no value thanks to the constant sales.
(I've stopped buying games, mostly because of my backlog, but also because every next purchase felt a lot less valuable than the previous one. Previously, I was kissing every box that I was buying.)
I think that your point is valid, i understand it. However, i still think there are some benefits from these game sales. Honestly i have seen a lot of people who stopped pirating thanks to the low prices from Steam's sales. Piracy is not worth anymore, games are cheaper than ever, and there are even lots of great games for free now. Of course im not saying that low prices will stop piracy, its proven that low prices dont mean the end of piracy, but i think it does help, a lot.
And developers are once again starting to give more attention to the PC market. I think the huge boom in digital distribution services might have contributed to it.
And i still dont think that huge discounts are harmful. The sales are always applied to older games that dont sell as well anymore. There is nothing else to boost sales of older games other than discounts. People who just cant wait for the game will still buy it at full price, no matter what. And those who arent interested that much will wait. This way you get a lot more money by making the potential consumer base larger.
As an example, i just bought Max Payne 3 for full price last week. I know it will probably go on sale sometime for 5-10 dollars. But i wanted it now, i couldnt wait, i dont care if the price goes down later. Heck, i bought DNF for full price on pre-order and 5 months lates it got down to 5 dollars. And no, i dont regret it.
Now, as another example, i want to play RE Operation Raccon City, but there is no fucking way im paying full price for that. Im just not that much interested in that game for 50 dollars, since there are a lot of better games out there cheaper than it. If Capcom wants my money, they will have to get the price lower. And i believe there are a lot of consumers like me out there.
What i wanted to say is that these huge sales make us buy more games that we wouldnt normally buy. In the end, everyone wins, we get more games and they get more money.