I would pay for something that was 10 dollars up and have done but only in very limited cases. I think I would have paid more for Garageband, and if LA Noire or any of the Rockstar epics that didn't need to be downgraded to run on the pad. When we get Ipad3 (or possibly 4) we may see a real game changer as it may be up with the consoles, and an hdmi out (which in the best of all possible worlds would be wireless), and use of the pad as the controller for onscreen games, the triple A guys will want the market but not want to undercut their pricing on other consoles. But there will be a legacy of low pricing on the platform which may have drop their expectations. How you make a profit with a game that costs 50 million to dev I don't know if you sell it really cheap.
My thoughts are that you work with the market and make yourself attractive with a solid product for a low retail price, and work smart, rather that expensive, unless there is something 'other' about your app that can justify the price. Look at your target audience, your skills and invest in your project if there is actually a possible chance of making something out of it. There is a lot of going on about how duff a lot of things out there are but there is also some awesome games and other apps. Weigh it all up and be realistic... and good luck.
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My thoughts are that you work with the market and make yourself attractive with a solid product for a low retail price, and work smart, rather that expensive, unless there is something 'other' about your app that can justify the price. Look at your target audience, your skills and invest in your project if there is actually a possible chance of making something out of it. There is a lot of going on about how duff a lot of things out there are but there is also some awesome games and other apps. Weigh it all up and be realistic... and good luck.
kipper