I read an article a while back on the psychology of various priced models of consumer appliances/electronics. From what I remember: say a company that sells watches really wants their $40 watch to be the one that people choose. They'll make models for $10 because they know some people just want a cheap watch. Then they'll make a few more models coming up from there, slowly adding a feature here and there. Adding alarms, chronographs, the date, timers, multiple time zones, etc. until they hit the price point they really want to sell at. Then they'll make a big jump to another model with a few more features, but a lot more price. Basically, they have all the cheaper models to get your eye moving up the chart, talking yourself into getting all these features, then they have the expensive one so that you feel like you're getting a deal by grabbing the one at the price break, even if you don't need three alarms and the time in Abu Dhabi. They don't expect the expensive one to sell well, it's there to convince people they got a deal, and the rest are just to make people feel like they have a choice.
That's what the video game industry seems to be latching on to.