It's a buyers market and the videogame industry uses a fixed pricing model which obviously doesn't make any sense (given that many games go on sale one or two weeks after release for steep discounts).
The industry revenue model has shifted and publishers/developers who can't keep up are going to have to offer steep discounts.
Is it there own doing? Absolutely. You have an industry that seemingly
by fiat has declared that every game, regardless of quality, expenses, development team, etc., will be $60 MSRP on release. This is ridiculous. With the exception of independently developed/produced games, virtually every major publishing company releases all of their retail/digital games at $60. Compare it to almost any other consumer industry. Should an Izuzu Roadster cost the same as a Mercedes? A Toyota Corolla be sold for the same as a Toyota Highlander?
The consumer isn't stupid either. Most of us can identify a game that's going to be marked way down in a few weeks. We know that GTA V, The Last of Us, Mario 3D 2014, and several other games are going to hold their prices through the holidays, while Deus Ex, Dishonored, and Rainbox Six are going to be steeply discounted before and after the holidays. Just like the auto consumer isn't stupid. They know that a 2016 Kia or Hyundai crossover is going to be steeply discounted a month before the 2017 models roll out, while a 2016 Audi or Volvo is going to hold its value longer.
Publishers (and by extension, developers) have priced the gaming market under the assumption that
the consumer is stupid and can't decide whether Game A is worth the same as Game B. It's bygone practice from a bygone era in videogame production that persists because its an industry that is contradictorily resistant to change.
This is the other part of why games are services. If you're making less money up front, it makes way more sense to have a ton of monetization on the back end.
If you're Dishonored 2, it sure sucks way more to have your game selling at $30 than it does if you're Call of Duty or Battlefield.
Spot on. Same with a game like Madden (in the regard of CoD or BF), which EA eventually gives away for free a few months after release. They have a revenue model that extends into the spring on annual Madden or FIFA releases, and they generate revenue for the game even while giving the game away for nothing.
For a game like Dishonored, or any other big budget game that has no other revenue model, they're bargaining everything on those initial sales. It's a major risk, but it's been an obvious trend in the industry for over a decade... And some developers/publishers are more nimble with their revenue model, while other publishers (and many enthusiast gamers) reject and protest any change to the traditional revenue model.