While this story is a few weeks old, it's a slow news day and it's still a relevant topic. CNN's Chris Morris asks if video game prices are too high. Citing the sales success of FIFA 10 in Europe as an example, Morris quotes games industry analyst Colin Sebastian, who's openly wondered if its time for a video game price cut:

“Maybe it’s not just the recession or just a lack of interesting content to consumers – maybe it’s that prices are just too high,” says Colin Sebastian, an analyst with Lazard Capital Markets. “Maybe the cost-benefit analysis [of a price cut] should be done and maybe be retailers already have a better read of that.”

Several U.S. retailers have shaved software prices somewhat. But they’re constrained by the publishers on how much they can reduce the cost of a new game.

While publishers do not technically have pricing authority with U.S. retailers, they are legally allowed to punish those who price a title too low. This is typically done by withholding future titles or refusing to restock copies of a hot game. It happens infrequently, notes Sebastian, but the open threat of such action generally keeps retailers in line with pricing practices.

In Europe, though, publishers are unable to enforce a game’s recommended price – giving retailers a lot more leeway. And the decision by some stores, particularly in the U.K., to lower the price of EA’s [ERTS 19.73 -0.24 (-1.2%) ] “FIFA 10” played a role in the title becoming the fastest-selling sports game in the industry’s history.

“Discounting in the U.K. is not unusual, but when you’re faced with a situation where a lot of games are not reaching expectations and you see a game like FIFA outperform in the U.K., that’s got to get people thinking,” says Sebastian.

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