It seems another one of the XBLCG developers has gone on the record regarding the pricing of downloadble titles.
For the uninitiated CG's can be priced at 200, 400 and 800 Microsoft Points, which is equivalent to £1.70, £3.40 and £6.80 respectively, or thereabouts. Games over a 50Mb file size limit have a minimum price point of 400 MSP.
Personally I find the argument that downloadable titles are too cheap a little hard to accept. Whilst a title like Braid allegedly cost USD180k to make, it has also generated revenue of USD2.7 million. It's a classy title, and a landmark in the culture of gaming, but I don't think eight quid is too little to pay for something that'll last a few hours at best.
When our title goes out, it'll be at the minimum amount possible. I'd much rather have twice as many people buying at half the price, simply because I want people to play the damned thing.
There's no way on Earth we're going to be able to cram all the artwork and music in under 50Mb, but the game will still be cheaper than a pint in most London bars.
And if people are too tight-fisted to shell out such a paltry sum? Well, err... I'll see you outside the Job Centre in six months!