It has definitely raised prices for a name that would be known in advance to be valuable. No question there. But the increase in number of people registering multiple names has supported a reduction in price.
The actual number of names, (not taking into account putting a dash in one or more places and the fact that there are only a few 1 letter names that aren't blocked and some other stuff) is approx 26 to the 63rd power.
While that's finite it still a huge number of possibilities. (Like ipv6)
I have in my hand an invoice dated 1999 (my earliest domain was '96) and the charge is $70 (for two years). Before that if my memory is correct the price was $100 for two years. Before that the price was 0 (yes 0 when there were so few takers).
It's a little chicken and egg but the fact that a high volume registrar (like godaddy) registers so many domains allows them to make so little per domain. (Actually that's not entirely true they also make money by selling you things you don't need but that's a entire separate subject.)
So the bottom line is this. If you look at the registration activity speculators and non users of domains drive up registration volume greatly. But of the names they register, only a small percentage of those have anyone interested in buying at any price. So in the end the fact that they do what they do drives prices down for everyone.
Edit: Although I agree that's little consolation if they have the domain you want. But there is certainly no guarantee that the name you want wouldn't have been grabbed by someone before you anyway, right? (See woodrich.com below)
For example, the following are all available at a low low price:
It has definitely raised prices for a name that would be known in advance to be valuable. No question there. But the increase in number of people registering multiple names has supported a reduction in price.
The actual number of names, (not taking into account putting a dash in one or more places and the fact that there are only a few 1 letter names that aren't blocked and some other stuff) is approx 26 to the 63rd power.
1.3909801171074219559097425909479540384265584214249033... × 10^89
While that's finite it still a huge number of possibilities. (Like ipv6)
I have in my hand an invoice dated 1999 (my earliest domain was '96) and the charge is $70 (for two years). Before that if my memory is correct the price was $100 for two years. Before that the price was 0 (yes 0 when there were so few takers).
It's a little chicken and egg but the fact that a high volume registrar (like godaddy) registers so many domains allows them to make so little per domain. (Actually that's not entirely true they also make money by selling you things you don't need but that's a entire separate subject.)
So the bottom line is this. If you look at the registration activity speculators and non users of domains drive up registration volume greatly. But of the names they register, only a small percentage of those have anyone interested in buying at any price. So in the end the fact that they do what they do drives prices down for everyone.
Edit: Although I agree that's little consolation if they have the domain you want. But there is certainly no guarantee that the name you want wouldn't have been grabbed by someone before you anyway, right? (See woodrich.com below)
For example, the following are all available at a low low price:
woodrichplumbers.com
woodrichpainters.com
woodrichrestaurant.com
But not "woodrich.com" (registered in '96)