> What, charge the customer the maximum amount of money they will pay?
> Isn't that how business operates?

If you can afford to have individual price negotations with each 
customer then yes, that is a good strategy, and is actually the one used 
for many things. eg when you buy a car the salesman's job is to get you 
to buy the car for the maximum amount you are willing to. This could 
result in the next person through the door buying the exact same car for 
£1000 more or less than you just paid.

At the other end of the scale you have a tin of beans in a supermarket, 
the price of that is decided to maximise profit. They need to look at 
how the estimated sales volumes depend on price, and choose the best 
point on that graph. Of course in reality there are many complicating 
factors that would skew the price away from this (eg loss-leaders, 
promotions, "value" and "high quality" branded versions, etc).

I have no idea how cryengine is sold (internet blocks most game-related 
pages here) but I could well imagine their big customers pretty much 
demand some level of negotiation on the price and terms etc. What 
business doesn't?

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