[ankhmoop]

Unless you produce one of the very few 'hits', you'll lose money developing a $1.99 application.

[menloparkbum]

you lose even more money developing an application that costs more than $2.99 - because nobody buys them.

[ankhmoop]

If that's the case, then the market is unsustainable. Players will fail, causing scarcity, raising the value of applications, and conditioning users to expect to pay more.