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They’re competing against games like Hollow Knight which offer 40+ hours of content for less money.
Hollow Knight is from 2017, I don’t think it was out there draining business form this seven years later. Bloodstained is more recent, and that cost the same as PoP. Also the Ori games, which are priced the same.
Plus this launched half off on Steam and nobody bought it despite being cheaper than Bloodstained and Ori.
So… I mean, it could have been that, but it pretty clearly wasn’t that.