On a $40 game we net about $15 these days at retail.
There's MDF, which is effectively a slotting fee, as well as the manufacturing, the distributor's cut, the retailer's cut and that's before taking into account the costs of having a retail sales force to go out and negotiate with each retailer, attend their shows, etc.
That's just how retail is. They still sell more units than digital (at least for us) but there is also a lot of risk and cost associated with it.