Sigh. A complete failing of the workings of how prices are determined. A common, amateur mistake.
Jeff, stop thinking that production costs have anything to do with pricing. If that was true, then everything ever sold would be profitable and everybody would have a license to print money by simply manufacturing something, adding a markup that makes you rich, and then sitting back and have people buy the product.
No, prices are determined by what the market will bear. Put aside your foolish, silly notions about “well, physical media is expensive and electrons cost nothing!”. That has nothing to do with anything. It’s all about what people will pay. And people are paying $50 for downloads. What’s the problem?
Let me put this into perspective for you. That coffee maker you have on your counter? That’s maybe, at most, 5 cents worth of plastic (that’s a REALLY high number, BTW). It cost, maybe, $5 to manufacture (again, a REALLY high number). So why is it $50? It’s because you were willing to pay $50.