When word of Castle Crashers 1800 points pricing hit, some of us was fucking pissed. Amazingly though, some of us were pretty receptive to the idea. An email chain ensued. Here’s how it played out;

Xav: Castle Crashers is set @ 1800MS Points and Braid is set at 1200MS Points on the Xbox Japan blog… could it be the same for NA/Euro? Uh, we’re guessing yeah.
Ryan: Yikes. That becomes even crazier internationally, due to MSP exchange rates. 1800 MSP = $28.28 CAD.
Kevin: Where is your XBLA God NOW?!>&$#
Xav: I don’t know. From what I hear is included in the game it could have easily been a retail product at $39.99. We’ll have to wait for the Wii version to see I guess.
Jim: Yeah, but from what I hear it isn’t. Do you want to put it in a box? Put it in a box. They didn’t. Know your market, assholes.
Xav: Digital downloads are only going to go up in price across the board. All I can say is get used to it.
Jim: Yeah, but there’s a difference in digital downloads. For example, I have no issue paying $10 for one PSN item and $40 for another because that’s the way things work. I know what I’m getting. Live Arcade has set precedent on its pricing. If they want to create a new service outside of Live arcade (like they did with Originals and are doing with PrimeTime) to promote retail-quality content at $40 a pop, I’ll pay it. Otherwise, they can go fuck up a tree.
Xav: The Arcade was always meant to be a download service for smaller games. Don’t get mixed up with the branding. Hell, when the arcade started games were priced at PopCap levels. Stuff is getting shifted around. I’m not saying it’s cool, I’m just saying it’s where the service is going.
Ryan: All I can say is DO NOT WANT. (I will probably pony up for Braid because I’m so intrigued, but unless CC is mindblowing… ah who am I kidding, I’m a Silver peon anyways)
Jim: That’s the thing though Xav — just like you said, it’s meant to be a place for smaller games. 1800 points is not an acceptable price for a smaller game. If this is a bigger game, then it doesn’t belong on the Live Arcade.
Santos: To be honest I don’t mind paying the high price as long as it a real game and has meat to it.
Dan: It’s definitely a shock to the system, but depending on the demo I might end up getting it. I will say this, the price moved it from a “must-buy the second it’s available” to a “well let’s take a look at the demo first”
Santos: Question for the room. If the game comes out on a disc instead of XBL, would the price bother you?
Kevin: It will depend on how much stuff comprises this game. If it’s got the content of a $20 game I have no problem paying that. I’m in Dan’s boat, it’s now a check out the demo first.
Ryan: They could at least eliminate the 350MB cap if they’re going to go this route. I’m ok with $30-$40 games, as long as they are, you know, actual $30-$40 games, if you take my meaning. Perhaps they should just ditch the “arcade” branding altogether or come up with a new one. Just to change the perception?
Dan: Ryan makes a good point. If they’re going to more full-length style games (a la PSN) then a re-branding might be a good idea, to be honest. Look at Siren on the PSN…. it’s a full-length game with a full-length price.
Xav: I think a lot of the anger is the perception of the Arcade brand. I think they’re kinda stuck with it. But, who knows. We can’t say it isn’t worth it yet until we try it. I hope it is cuz I want the game, but if it isn’t I won’t buy it. Just like I didn’t buy GeoWars2 today for a clone of what I have on DS and no online modes. Eff that noise.
Jim: Agreed. Microsoft has compartmentalized themselves into a corner.

Where do you stand on the subject? Too expensive? totally worth it? Or potentially a justified price that is just too big for the service?