We've talked about this several times before on TiPb, but Jeremy Horwitz over at iLounge takes an interesting journey via the game Peggle, what it's release looks like for the Nintendo DS at $30, how retail sales prices break down, and what it might mean for iPhone gamers if they're forced by market conditions to give us a barer-boned $5 version.
We know Apple said "free apps stay free", so there's still no model for demos to get people hooked, but the idea of ScaleWare, so a low introductory price can be followed by a few level/feature pack upgrades is something we're fond of. Horwitz rightly points out that if devs over use this, however, it could make things worse:
just imagine the commercials showing someone actually playing a full Sony or Nintendo handheld game alongside someone clicking on iPod touch dialog boxes to the sound of a cash register.
iLounge likes the idea of regular games (i.e. cheap) with the in-app option to upgrade to deluxe versions (i.e. full price). Sounds good to us. We want great games on the iPhone, and we're willing to reward developers with fair prices for their work. Are you?