You have to realize there are people (like me, for example) who never (well almost never!) buy games at full price. I either look for used one, or wait for discounts. I have no urge to play most of the games - I do make an exception once in a while, like when a new GTA comes out. But that's it.

I mean it's the same for every product. The first computers were ridiculously expensive before becoming ridiculously cheap. It's all about the cycle of "early adopters" then reaching the mass market. If you want to reach the mass market with your games, it's much easier to do so by lowering your price. Doing TV marketing works, too, but it costs so much money it's not even for the same league of games. You can only do TV if you expect to sell several millions of it.

Anyway, back to my point: not all gamers want to spend 60$ in the first place. Some won't. So they will either buy your game at 5$ or never buy it. The rest is all about lost opportunities.