I know exactly what you mean, if I take that $59.95 and backtrack it to the developer it would look something like this..
Retail: $59.95
Distributor: $23.50
Publisher: $18.50
Developer: $8.50
The dev/pub price difference can vary by $2-$4 depending on which covers the cost of duplication and packaging. (In the above list it means the dev could get as little as $6.00/game)
And, if you consider the dev costs, in salaries alone (say 3 people at $35,000/year and the project takes 1 year to complete) the developer will need to sell from 12,500 - 17,500 units (games) just to break even.
Even if the three employee's above were the best of friends and accepeted to work for say $15,000 to help lower the dev costs, the company would still have to sell 5300 units to break even. Then consider that they probably burn 10,000 copies in their first run, alot of 'spare' copies of the game will be sitting in the back room of the office. It's no secret that this 'overstock' is the source for the abundance of 'Bargain-bin' stuffers. (which the developers end up selling at cut-rate prices just to keep alive til the next product get finished. So you can imagine just how hard it is to sell 5000 copies let alone 10, 12 or 15,000.
Anyway, I digress, Have a great day, Cheers!
P.S. Thank you Shrapnel for proving that your business model works, and that Online publishing is helping developers get their fair share. 'Doing the right thing' always did seem like a good business strategy to me.
Nuf said.