Once you recoup your development costs, then it's almost ALL profit. You still have to pay for producing discs and packaging, but a $1000 DVD of Photoshop will cost roughly the same to physically manufacture as a $50 game. Why do you think software goes down in price over time, notably in digital distribution? Services like Steam don't have to worry about shelf-space, so once the developers break even, they can afford to lower the price to entice more customers. A lower profit per unit is certainly better than none at all.

Please pay attention when you're deriding someone: "...after it's creation there is no cost". The parent noted your point, and your final comment certainly speaks volumes about your powers of observation.
Bravo, good sir, bravo.

*puts on tinfoil hat* I think it's simply collusion; rather than fairly competing with each other in regards to SMS prices, the U.S. telcos simply keep their prices roughly the same, as high as they can get away with. It feels like so many Americans prefer to be ignorant of the rest of the world, that we just think it's expected that SMS messages cost an arm & a leg to send and receive, unless you get a package. Call me a cheapskate, but I'm not going to spend as much as my internet connection, just to be able to send and receive one-sentence (if even that) messages.

Also, prices per text are so high because the telcos want everyone to sign up for texting plans. Do you honestly think everyone uses $20+ each month for the data transfer of SMS messages? The telcos are just milking the cash cow for all it's worth.

What REALLY burns my butter is when 'friends' just don't get the fact that I don't have an unlimited-texting plan, and -I- pay for every one of their inane "wat u doin" texts. The only saving grace is when my attractive female friends start drinking and decide to send pictures of various body parts. (Can you say potential blackmail material?)