No, I didn’t mean BlockBuster LATE fee’s were ‘alone’ responsible for their demise. Overall, yes…the vending machines like the popular RedBox DVD’s for 5 times lower the price, as well as the RedBox late fee’s are $1.00 per day…as opposed to BlockBusters laate fee’s of $5.00 per day. At the end of the day, it was the PRICE differences that made the difference…the same with NetFlix, which I know people who use NetFlix, and would never go to BlockBuster again (before they went away).
Your description of setting of price does make good sense, but just how accurate that is simply can’t be known by regular people, let alone CEO’s of major companies. I for one will not go by what any company CLAIMS the set prices of ANYTHING is. Another example is SafeWay grocery store vs Wal-Mart stores for certain foods…we can pay $5.99 for Nestlie French Vanilla Coffee creamer at Safeway, yet we BUY it at Wal-Mart for only $2.99… and they have their highly complicated SET PRICES by so called experts! 
Now, I bet if Wal-Mart sold copies of Cubase, and were ALLOWED to sell it at a price THEY wanted…as opposed to what they’d be FORCED to … for the fair competition BS, they’d sell it for an unheard of low price.
With this I simply don’t believe that if Steinberg lowered their prices, they’d lose money, but would actually make more overall. But then again, they have their existing user base of incessant upgraders, and I’m betting these people make up for a major share of their income, and you can only get so much out of these people…on the other hand, you have newcomers, and people who do NOT keep upgrading…it’s THESE people that I would guess that could bring in more buyers & upgraders if the prices were lowered. As I keep saying, if say Cubase 8 was super cheap, I would probably buy it…it would be a 1st upgrade in more than a decade! But at $500-$600 or so, I will definitely NOT, Though I can afford it without fear of death, it’s simply not good money spent for a handful of hours per month I actually spend on music…Not because I don’t WANT to, I just don’t have the luxury of spending that much time on it.