It depends on the product, the competition and the economy. When VHS/Beta tapes from the movie studios cost $80 each, and the movie studios were suing the VCR makers and the rental parlors, income was modest. When E.T. was released for $19.99 the movie studios FINALLY realized they could make a LOT more money by selling cheaply replicated intellectual/artistic product by the boatload.
A sometimes viable strategy can be to set the initial price too high and initiate a sale after a while. The "sale" price will be the normal price, but people will still buy it....both metphorically and literally.
If you have greater financial resources than your competition, then a limited period price war can be good strategy. Your weaker competitors will be forced out of business, at which point you jack up your prices and take advantage of your monopoly status.