Appreciate everyone's responses supporting the $34.99 price, but he has a valid question which I'll try to address the best I can.
There are a lot of factors involved in setting the price for our games, such as the actual manufacturing cost of the game (which varies widely on cartridge-based media depending on how big the cart needs to be to hold all the game data), how much money from each unit sold needs to go to the licensor, what price our retail partners think they can sell it for, and even how many total units we think we can sell. If we thought a title could sell a million units then we would gladly sell each copy for $19.99, but when you have conservative sales expectations like we do then you have to make sure that you at least make back your initial investment with the right mix of the sales units X sales price.
With that said, nothing is set in stone yet as that is just what the retailers are showing as placeholders in order to take pre-orders as we have not officially announced a price yet. For what it's worth, we were selling the standard editions of our PSP games for $29.99 (Lunar: SSH, Ys SEVEN, Ys Felghana) when most other publishers were still selling theirs for $39.99, so we do try to make our price points as attractive as possible whenever we can.
PS And to answer the inevitable question, "So does that mean that if one person was willing to pay $1 million dollars for one copy of Retro Game Challenge 2, you would have the right mix of sales units X sales price to bring that title over?" Yes, yes it does.