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Because most of his friends dont live physically near him  Kind of hard to snail mail around a copy.
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Err. What? You just put it in an envelope.
It's too expensive
for you (well, your friends, anyway).
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If it was cheaper, fine, lets see they would make less money, but they would have a much larger community. Whats more important, a bottom line, or a community?
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You're positing a false dilemma. It's clear that Illwinter and Shrapnel can have
both the current price
and a good (not to say great) community.