To be honest I think they make more from video games than movies or music. I used to work in the industry, and trust me when I say that the mark up on software is HUGE. That's why they can afford to knock 75% off after 12 months and still make a profit. Once a game has recouped it's development costs - and the big titles can do this within a very short time - it's all gravy after that. Downloads and streaming have hit music and movies hard when it comes to physical formats, but games are relatively unaffected in comparison - for now. Over the next few years when it becomes more common for the majority of consumers to just download software that will go the same way as the CD and the DVD.
I wouldn't be at all surprised if you told me that they make more money on the t-shirts and iPod accessories than they do on their DVDs and Blu-rays.
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