Why do retailers charge full MSRP for new videogame releases, but usually sell new DVD's for less than MSRP?

Question

Ever notice that videogames sell for full MSRP, almost always, in the early part of their release, but DVD's almost always sell for much less than MSRP in the early part of their release. Also, almost always, DVD's are sold at a discount their first week of release, than go up to around US$20 for a period of time, before their price starts to drop on a regular basis. Videogames, on the other hand, sell for full price, full MSRP, most of the first six moths of their release.

Why?

I wonder if they need to lower the MSRP on DVD's to make it more reasonable?

Answer 1

Illegal copies of dvd's are so available that this afffects the price of the wholesale market, video games for playstation or xbox on the other hand have a much smaller black market...