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Why are $70 AAA games slashing prices so drastically?
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Because they're desperate to recoup some of their money for development and the game hasn't sold very well. Case in point: Suicide Squad is 3.49 or 4.99 for the deluxe edition. The game sold like trash so they desperately want to make some more money and hope people will go like "well it's only 5 bucks. I may as well."
Absolutely this.
Last ditch attempts to scrape the bottom of the barrel.
The Steam Autumn sale is right now. Almost everything is on sale.