Ok seriously, what are the studios thinking?

[GoodToGo]

I have been looking at the recent slew of Blu-Ray releases and have been shaking my head. In the recent state of economy, I am surprised the studios will resort to such tactics:

1) Releasing movies that target a very limited audience. I saw the other day the release of Street Fighter: Extreme Edition, Amusement and Pink Panther. If they expect to turn any kind of profit from that kind of release, then they really need to put down the pipe. Where are the movies that everyone wants? Star Wars, LOTR, Gladiator, BraveHeart, the list goes on.

2) Transformer's Extended edition was announced just recently. LOTR will not be extended edition. Do they really think people will double dip the movie just for a few extras? I for one will not and I am still decently well off.