For me, WotC developing a new system from the ground up is enough added to explain the price difference.
/Maggan
Well, I believe that they both made a playtest before releasing their products to the public, even though I admit that I don't know the duration (or even the process) of Paizo's one. However, there are a lot of factors that shape the final price. I am willing to pay more if some of them apply.
4e was printed in the U.S. Even though I live in Europe and both US and China are equally far from my country, I could pay more for a product, knowing that it supports the local economy. I could pay more for a book, knowing that the company pays better its writers and artists. Of course, I wouldn't pay more just because the company wants a greater (unjustified) margin of profit.
What I want to say is, that it's not just the 5 - 10 dollars that will make me buy or not a product, and I have a very (extremely I'd say) tight gaming budget. I may buy less products if they are expensive or buy them at a much slower rate. I will also buy them from my local flgs knowing that I will pay more than ordering from an online store, supporting the same people that introduced me to my first D&D, 20 years ago. I really hope that I will visit them one day with my own son and introduce him to the game that I loved when I was his age.
So, it's not about the money. It's the
quality where I base my choice. Will I like the system, the drawings, the fluff? That's what's more important for me...
(Sorry for my english)